The demand for low carbon, high-grade, post-consumer aluminum with primary aluminum quality is rapidly accelerating and will soon exceed supply.
Driven by legislation such as the European CBAM (Carbon Border Adjustment Mechanism) and other carbon tax policies, OEMs and aluminum foundries are responding to this reality.
They are now securing their share of high quality, post-consumer aluminum now, for the future.
As illustrated, any aluminum imported into the EU will be subject to a CBAM duty that equalizes the C02 tax with the equivalent European CO2 tax.
Limited supply of ultra-low carbon products like eccomelt356.2 may drive up prices and potentially impact companies that did not see this trend early enough.
When component producers can’t access the required volume of low-carbon raw material, they may find it difficult to source the raw material they need, or risk being excluded from projects by certain customers.
Moreover, higher taxes will be paid on carbon products, and recovering lost volume will become a cost burden, if material is not secured in advance.
At Eccomelt, we feel it is our responsibility, as producers of the lowest carbon, highest purity replacement for primary A356.2/AlSi7Mg on the market, to notify our valued customers of the need to secure supply.
In accordance with the CBAM Roadmap, we recognize the growing demand for eccomelt356.2. Indeed, many of our key customers are pushing Eccomelt to expand our production capacities in both North America and Europe.
At Eccomelt, with our patented, non-thermal cleaning process, we are in the unique position to upcycle post-consumer wheels into new wheels, and many other safety critical components such as brake calipers and suspension knuckles.
eccomelt356.2 is a true replacement for primary A356/AlSi7Mg and an enabler of ultra-low carbon products.
With the extremely low carbon footprint of 0.136 tons of carbon per ton of aluminum, the use of eccomelt356.2 reduces any carbon tax that CBAM implements to almost zero.
The reality that sustainability and a circular economy are vital to the wellbeing of society has finally penetrated the public consciousness.
Energy transition and electrification of vehicles are big drivers of change and growth in our industry. Carbon accounting and reduction of carbon footprints are aligned with this trend.
In the last 5 years, “being green”, has been merely good for marketing, especially to end users. But it is now becoming essential for the future survival and growth of companies.
In the past, if a product met the technical requirements, its price was the determining factor behind purchasing decisions. Achieving a low carbon footprint was desired but not mandated or rewarded.
Today, meeting specifications regarding carbon footprint requirements and post-consumer recycling content is becoming the determining factor.
These requirements impact all producers and may determine if they can continue to supply their customers at all.
At Eccomelt, we are constantly improving our technologies and enabling producers to increase their recycling. Globally.
The demand for high quality, lowest carbon recycled content is very difficult to satisfy without a high level of expertise and greentech process.
North America is in a much better position than Europe in its ability to access post consumer wheels, since most wheels are recycled in North America and are made from the same alloy: A356 or ALSi7Mg. In Europe, most vehicles are not recycled at the end of their life, but rather, exported to North Africa or Eastern Europe.
But in either region,without using the precise and targeted greentech methods that the Eccomelt patented process provides, the wheels that are recycled cannot replace A356.2 primary aluminum without adding primary aluminum, alloying elements like Si and Mg (also carbon intensive), energy, additional costs, and incurring the upcoming CBAM taxes.
The conclusion is clear:
The more eccomelt356.2 we create and circulate in the market, the better it is for the entire industry in its quest for a sustainable and circular economy.
If you would like to discuss our solutions, we would love to hear from you and discuss your unique challenges.
Please get in touch to speak with our teams of experts: