Light Weight Aluminium Alloys – A Revolution In The Automobile Industry

Aluminium manufacturers are producing customized aluminium alloys for automobile manufacturers to produce light weigh vehicles. The use of aluminium alloys in vehicles reduces carbon emissions, increases fuel economy and improves overall stability as aluminium alloys considerably reduces vehicle body weight. This is primarily driven by stringent emission regulations and growing pressure to improve economy by many national and state governments. For instance, the US government’s federal emission standards, makes it mandatory for automobile manufacturers to increase corporate average fuel economy (CAFE) from 35.5 miles per gallon (mpg) in 2016 to 54.5 mpg by 2025. This increase in CAFE is being achieved by increasing the aluminium content in the vehicle’s body to reduce its weight by around 30%. In line with this trend, global automobile manufacturers are increasing the aluminium content in their vehicles.


Asia Pacific was the largest region in the alumina and aluminium production and processing market in 2017, accounting for more than half of the market share. This was mainly due to increasing demand from emerging markets development of new end-use markets and increased usage of aluminium in light vehicle manufacturing.

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According to The Business Research Company’s Consultant, Nitin Gianchandani, aluminium production costs have been declining due to implementation of cheaper and high efficient technologies that increase productivity and reduce power consumption. The implementation was either through replacement of high cost old technologies in older plants or the creation of new plants using modern cost saving technologies. Also, carbon anodes which represent a significant cost factor in aluminium production are made of petroleum coke and since oil prices declined significantly in recent years the price of carbon anode has also decreased significantly, thus leading to lower product costs. For instance, production cost of aluminium declined from $2019 per million ton in 2011 to $1750 per million ton in 2015. Thus, implementation of high efficient technologies coupled with low oil prices led to decline in aluminium production costs.

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Rio Tinto was the largest player in the alumina and aluminium production and processing market, with revenues of $9.3 billion in 2017. Rio Tinto company’s growth strategies aim at focusing on its high returning growth projects, including the Am run bauxite project, an aluminium development project. It expects to invest around US$5.0 billion in capital expenditure during 2017.

The alumina and aluminium production and processing industry includes establishments mainly involved in alumina extraction primarily from bauxite ore, producing aluminium from alumina, recovering aluminium from scrap or dross, refining aluminium by any process, alloying purchased aluminium and rolling, drawing, casting, extruding and alloying aluminium and aluminium-based alloy into primary forms such as bar, foil, pipe, plate, rod, sheet, tube, wire.

Alumina And Aluminium Production And Processing Global Market Report 2018 is a detailed report giving a unique insight into this market. The report is priced at $4000 for an individual user. To use across your office, the price is $6000 and $8000 if you wish to use across a multinational company.

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