BMW Group and Emirates Global Aluminium (EGA) have a contract for the first aluminum produced using solar power. Per the deal, the Middle East’s largest aluminum maker will supply 43,000 metric tons per year of solar aluminum to the German automaker in a deal worth approximately $121 million.
The aluminum produced using solar power is processed in the light-metal foundry at BMW Group Plant Landshut to manufacture body and drivetrain components, including those needed for electric drivetrains.
The agreement is vital for BMW’s goal of lowering CO2 emissions in its supplier network by 20% by 2030. Since producing aluminum is highly energy-intensive, the use of green power – such as solar electricity – offers considerable potential for reducing CO2 emissions.
EGA, which is based in the United Arab Emirates, says it is the world’s first company to make aluminum commercially with solar electricity.