Automotive Industry Hot Topics – Sustainability Special Edition (08/31/2023)
This week we have collaborated with Fresh Coast Climate Solutions for a special edition of Hot Topics focusing on auto supply chain sustainability in the face of climate change. This is in collaboration with the announcement of the release of a research paper titled, “Escalating Need for Auto Supply Chain Action to Align with Paris and Limit Warming to 1.5°C.” This comprehensive study delves into the critical intersection of automotive supply chains, climate change, and sustainability initiatives. As the world grapples with the urgent need to address climate change, this research highlights the imperative for the automotive industry to align with the Paris Agreement and limit global warming to 1.5°C.
View the press release here: Escalating Need for Auto Supply Chain Action to Align with Paris and Limit Warming to 1.5°C Press Release
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- Mercedes expands their green steel partnerships including binding purchase agreements
- ZF signs green steel deal with H2 Green Steel
- Auto and the US green steel market
- Lack of concrete action on steel by automakers
- The road to clean steel runs through electric vehicles
- Hyundai Steel makes automotive-grade steel with EAF
A key to reducing the industry’s carbon footprint lies within steel production. Green steel, produced using environmentally friendly processes, is necessary if the industry is to meet its CO2 objectives. To encourage funding of new processes, steel providers need long-term commitments from auto OEMs to mitigate investment risk. Collaboration between the supply chain and OEMs is essential.
- Stellantis invests on high-intensity mineral-free battery company
- Sodium-ion batteries coming to EVs in 2023
- BYD joint venture to mass produce sodium-ion batteries
- Vulcan Energy to produce zero-emissions lithium
It is great to see progress in EV battery development. Lithium-sulfur is under exploration while sodium, a low-cost alternative to lithium, seems to be close to a production start. Toyota is investing in solid-state batteries and lithium iron phosphate batteries are now in production. Investment in battery chemistry is abundant as the industry looks to optimize energy density, safety, and weight.
- Polestar and Rivian Say EVs Aren’t Enough to Hit Climate Goals
- Why suppliers are critical to auto industry’s carbon footprint
The auto industry has one of the most complex supply chains of any industry. Over the past 30 years, automotive components and systems have increasingly been outsourced to tier 1, 2, and 3 suppliers. Reducing the industry’s carbon footprint requires a concerted effort by all parties in the supply chain. Navigating multiple tiers in numerous locations within a fiercely competitive industry presents challenges, particularly in terms of achieving cooperation, coordination, and transparency. Clear communication, adequate planning time, and a commitment to transparency are essential if the industry is to achieve its CO2 target.
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