The "China Low Carbon Aluminum Lighthouse Project" cooperation memorandum was signed! Mercedes-Benz (China) and Yunnan Aluminum Co., Ltd. join hands to promote emission reduction and carbon reduction!

Published: October 20, 2023 Lvdaowang.

On October 19, the 11th Mercedes-Benz Group China Sustainable Development Dialogue was held in Beijing. The 11th Mercedes-Benz Group China Sustainable Development Dialogue was held in Beijing, attracting more than 200 people. People from all walks of life including the automobile, business, academia and media participated. At the meeting, the "Mercedes-Benz Group China Sustainable Development Blue Book 2022-2023" was released, sharing the latest achievements and progress in the field of sustainable development.

At the meeting, Yunnan Aluminum Co., Ltd. and Mercedes-Benz (China) Investment Co., Ltd. jointly signed the "China Low Carbon Aluminum Lighthouse Project" Cooperation Memorandum. Ning Degang, deputy general manager of Yunnan Aluminum Co., Ltd., and Zheng Yi, executive vice president of procurement and supplier quality of Mercedes-Benz (China) Investment Co., Ltd., signed on behalf of their respective companies.

With the signing of the "Memorandum", the two parties will explore "gradually increasing the application of low-carbon aluminum materials in automobile production", work towards collaborative carbon reduction upstream and downstream of the industrial chain, jointly create a green low-carbon automobile aluminum supply chain and low-carbon cooperation efforts to form "Lighthouse" effect, thereby making substantial contributions to combating global climate change.

By working closely with its Chinese partners, the Mercedes-Benz Group continues to carry out carbon reduction initiatives covering the entire value chain in China. In terms of supply chain, steel and aluminum materials, which account for the majority of carbon emissions from automobile production, are one of the main directions of attack. Last November, Beijing Benz and Baosteel joined hands to explore the integration of low-carbon steel products into the vehicle manufacturing process.

At this dialogue meeting, Mercedes-Benz (China) Investment Co., Ltd. and Yunnan Aluminum Co., Ltd. signed a memorandum of cooperation. This is an innovative low-carbon aluminum production project launched by Mercedes-Benz Group China after detailed research in China. The two parties will explore low-carbon footprint aluminum raw materials that meet the ASI Aluminum Certified Chain of Custody (CoC) standards, and how to gradually increase the application of low-carbon aluminum in automobile production. Research shows that aluminum plays an important role in lightweighting automobiles. Compared with the industry average, the carbon dioxide emissions generated by using renewable electricity during the electrolysis of aluminum will be reduced by 55%-60%. This year, Beijing Benz will also explore a wider range of sustainable raw material procurement and plans to integrate low-carbon aluminum into product production.

Mercedes-Benz (China) Investment Co., Ltd. was established in Beijing in 2001. Since then, it has continued to increase investment in the Chinese market and carry out long-term cooperation with strong Chinese partners to meet the diverse needs of Chinese customers. In 2019, the Mercedes-Benz Group proposed the "2039 Vision", aiming to achieve green and low-carbon development throughout the entire industry chain. Yunnan Aluminum Co., Ltd. adheres to the concept of green and low-carbon development, promotes the implementation of the carbon peak and carbon neutrality plan in accordance with Chinalco Group's development strategy, and fully relies on the clean energy advantages of Yunnan Province to build energy conservation, emission reduction, clean production, and recycling. As an integrated green development model, the company's product carbon footprint remains industry-leading, and it is the first company in the domestic aluminum industry whose entire industry chain has passed ASI dual certification.

At the signing ceremony, the leaders of both parties said that Yunnan Aluminum Co., Ltd. and Mercedes-Benz share the same philosophy and the common ideal of green and low-carbon development. Both parties will uphold the concept of responsible and sustainable development. Give full play to their own advantages and jointly explore greener and lower-carbon production methods in the automotive industry through strong alliances, create a model of green and low-carbon cooperation, and fulfill both parties' commitment to sustainable development.

As one of the first car companies to announce a carbon neutrality goal, the Mercedes-Benz Group clearly stated in its "Vision 2039" that its new car product lineup will be carbon neutral throughout the vehicle's entire life cycle by 2039 at the latest. In China, Mercedes-Benz Group China continues to accelerate its "full electric" strategy and continuously enriches its new energy product matrix. In the third quarter of 2023, the delivery volume of pure electric vehicles increased by more than 70% compared with the third quarter of 2022, continuing to consolidate upward momentum.

Mercedes-Benz Group China stated in the 2023 Sustainability Blue Book that as one of Mercedes-Benz’s core values, sustainable development drives the company’s business development in China. We are committed to supporting China’s sustainable development goals, such as China’s “3060 carbon peak and carbon neutrality” goal. At the same time, we are determined to become a leader in sustainable development in China and promote positive changes in China's automobile industry. In order to guide the company's sustainable development actions in China, we have established two major strategic goals:

By 2025, we plan to further strengthen sustainable luxury automotive products and services through actions and performance in various aspects of environmental, social and corporate governance (ESG), especially to enhance the recognition of electric models in the Chinese market. Looking forward to 2030, we have set specific sustainability goals and milestones, including achieving carbon neutrality in the production process and reducing carbon dioxide emissions throughout the life cycle of new vehicle products by at least 50% compared to 2020.

Low carbon supply chain

Mercedes-Benz Group China deeply understands that achieving carbon neutrality across the entire value chain of its new passenger car product lineup requires close cooperation with suppliers. Therefore, we work with our suppliers to explore and apply ways to reduce the carbon footprint of the raw materials we purchase. Our goal is to ensure that all raw materials used in the production of passenger cars and commercial vehicles are carbon neutral during their production by 2039. We will focus on the production of raw materials steel and aluminum as their potential to reduce emissions during production is particularly significant.

Aluminum plays a key role in the energy transition, especially in the lightweight manufacturing process of automobiles. However, the level of carbon emissions during the production process of aluminum is very significant. In China, aluminum production mainly relies on coal power generation, which makes its carbon emission levels higher than those in countries and regions that use renewable energy for production. In order to solve this problem, Mercedes-Benz Group China conducted in-depth dialogues with a number of suppliers and conducted detailed market research. Thanks to the efforts of many parties, we have launched an innovative low-carbon aluminum production project in China. Through cooperation with China's top aluminum products manufacturer - Yunnan Aluminum Co., Ltd. (hereinafter referred to as "Yunnan Aluminum"), we are committed to obtaining and using low carbon footprints that pass the ASI Aluminum Certified Chain of Custody (CoC) standard of aluminum raw materials, gradually increasing the application of low-carbon aluminum in our production lines, and extending it to the production process of other purchased parts. Compared with the industry average, the carbon footprint of such aluminum raw materials produced through low-carbon technology can be reduced by 55%-60%.

Looking to the future, the Mercedes-Benz Group hopes to establish closer cooperative relationships with aluminum suppliers, further reduce the carbon emissions of aluminum, and continue to optimize the recycling mechanism of the aluminum supply chain.