BMW Group produces aluminum using solar energy

The production of aluminum is very energy-intensive. Therefore, the use of green electricity – such as solar power – has significant potential in reducing CO2 emissions. Consequently, the BMW Group plans to source aluminum produced with green electricity in the long term, thereby saving approximately 2.5 million tons of CO2 emissions over the next ten years. This corresponds to about three percent of the self-imposed CO2 targets for the supplier network. Dr. Andreas Wendt, Member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network, explains:

“We are leading the way in sustainability and consistently implementing our sustainability goals. Over 50% of the CO2 targets we have set for the supplier network by 2030 can be achieved solely through the use of green electricity. Using solar power for aluminum production is a big step in this direction.”

The Landshut plant will source half of its aluminum needs from sources that produce aluminum with solar energy.

The aluminum produced with solar energy will be further processed in the light metal foundry of the BMW Group plant in Landshut into body and drive components, such as those needed for electric drives. With 43,000 tons worth a three-digit million-euro amount, the procurement of solar aluminum covers nearly half of the annual needs of the light metal foundry at the Landshut plant. This is the largest production area of the BMW Group plant in Landshut and the only production site for light metal casting of the BMW Group in Europe. In 2020, over 1,600 employees produced 2.9 million cast components. The production range includes engine components such as cylinder heads and crankcases, components for electric drives, and large structural parts for vehicle bodies. According to BMW, the light metal foundry is one of the most advanced foundries worldwide.

Green electricity also reduces the vehicle's CO2 footprint

With the trend towards e-mobility, the share of CO2 emissions in the lifecycle of a vehicle shifts significantly to the upstream value creation in the supplier network. In an electrified vehicle, CO2 emissions during the use phase are significantly lower, while the production of battery cells or aluminum is very energy-intensive. Without countermeasures, CO2 emissions per vehicle in BMW Group's supply chain would increase by more than a third by 2030. The company aims not only to stop this trend but to reverse it and reduce CO2 emissions per vehicle by 20 percent compared to 2019. Therefore, the BMW Group has already agreed with the suppliers of the current fifth-generation battery cells that green electricity will be used exclusively for the production of battery cells.

The production of primary aluminum, i.e., aluminum directly made from the mineral raw material alumina, alone accounts for about 60 percent of the greenhouse gas emissions of the global aluminum industry. Using solar power is an effective lever to reduce the CO2 emissions associated with aluminum smelting.

A large solar park in the desert supplies green electricity for aluminum production

The BMW Group has a long-standing supply relationship for primary aluminum with Emirates Global Aluminium (EGA). EGA is now the first company in the world to use solar power for commercial aluminum production and will initially supply this exclusively to the BMW Group. EGA sources the electricity for the production of aluminum destined for the BMW Group from the Mohammed Bin Rashid Al Maktoum Solar Park in the desert outside Dubai.

The operator of the solar park, which is set to become the largest solar park in the world at its final stage of expansion, is the Dubai Electricity and Water Authority. It certifies the sustainably generated electricity through third parties, making it traceable and transparent, and delivers it to EGA. Abdulnasser Bin Kalban, Chief Executive Officer of EGA, explains:

“We are pleased that the BMW Group is the first customer for EGA's low-carbon CelestiAL aluminum. Aluminum is light, strong, and infinitely recyclable. Therefore, it plays a crucial role in developing a more sustainable society and makes modern life possible. But it also depends on how sustainably aluminum is produced. Solar aluminum is a step forward – exploiting a natural and abundant energy source in our desert environment to produce a metal vital to the future of our planet.”

Responsible Use of Natural Resources

In addition to using green electricity for aluminum production, the BMW Group is taking additional measures to protect the stocks of critical raw materials. The BMW Group has set the goal of significantly increasing the proportion of recycled materials, so-called secondary materials, by 2030 and using raw materials multiple times in a circular economy. The use of secondary materials significantly reduces CO2 emissions compared to primary materials and also conserves natural resources.

First Successes Already Tangible with the BMW iX

In the BMW iX, the use of renewable green electricity in the production of battery cells, together with the increased use of secondary materials, reduces CO2 emissions in the model’s supply chain by 17 percent compared to the iX that would have been produced without these measures.

What Does This Mean?

By 2030, the BMW Group aims to have more than seven million electrified vehicles on the roads, two-thirds of which will be fully electric. For this magnitude, the BMW Group procurement department, together with suppliers, wants to ensure that the volume growth in the supply chain can be managed. Additionally, the requirements for sustainable actions are to be implemented.