Based on 2021 data, primary aluminum emits an average of 16.6 tons of carbon dioxide per ton, according to the International Aluminum Association, making it one of the most carbon-intensive segments of the metals industry, as well as automakers that use a lot of aluminum sheet.
A vice-president of Rusal Shanghai Economic and Trade Co LTD said at a conference on Friday: "More and more low-carbon aluminum is being produced using hydropower or recycled materials to lower carbon emissions. We are very optimistic about low carbon demand in China."
Rusal says almost all of the 4m tonnes of electrolytic aluminium it produces each year is low-carbon, emitting no more than four tonnes of carbon.
The company sells 400,000 to 500,000 tonnes of aluminium a year to China, accounting for a large share of the country's 1.58m tonnes of imports.
Rusal's low-carbon products cost $20 - $40 a tonne more than spot prices in China, compared with up to $60 a tonne for aluminium contracts listed on the London Metal Exchange in Europe, the vice-president said at an event at the Shanghai Metal market.
Demand for low-carbon aluminium is higher in Europe. However, many Chinese electric car makers are making efforts to reduce their carbon footprint in anticipation of growing pressure from overseas consumers to reduce emissions, according to a raw material purchasing manager at Chinese electric car maker Nio 9866.HK.
NIO aims to use aluminum products with carbon emissions capped at 7 tons, the purchasing manager said at the Foshan conference, adding that aluminum products account for about half of NIO's vehicle emissions.
Aluminium manufacturers will increase production of the low-carbon metal by 10 per cent in 2023, driving down the cost of carmakers seeking climate-friendly supplies.
