Rio Tinto Partners With BMW For Low-Carbon Aluminum Supply
Mining giant Rio Tinto plc (NYSE: RIO) has partnered with BMW (Bayerische Motoren Werke ADR) (OTC: BMWYY) to develop more responsible, sustainable, traceable and secure supply chains.
Under the new partnership, Rio Tinto plans to provide responsibly sourced aluminum to the BMW Group's vehicle production plant in Spartanburg, South Carolina, for use in body components from 2024.
Low-carbon primary aluminum from Rio Tinto's hydro-powered operations in Canada, combined with recycled content, could generate a reduction of up to 70% in CO2 emissions compared to the BMW Group's benchmark for aluminum.
Also Read: BMW Group Registers 4.8% Vehicle Sales Decline In 2022
The two companies have signed a Memorandum of Understanding (MoU) which will see technical experts working together on how to embed these low-carbon solutions into the BMW Group's supply chain.
The parties will also work to deploy START from Rio Tinto, providing supply chain traceability to customers and consumers with information about provenance and ESG standards.
"As global demand for responsibly sourced materials continues to grow, automakers are increasingly looking to partner with suppliers who share their commitment to traceability and sustainability," said Rio Tinto chief commercial officer Alf Barrios.
Price Action: RIO shares are trading higher by 2.23% at $76.21 in premarket on the last check Tuesday.
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