European automakers demand South32’s higher-cost ‘green aluminium’

European carmakers are choosing to pay an extra $10 to $15 a tonne for “green aluminium” from Australian diversified miner South32, as automakers race to secure metals made without fossil fuels to cut their carbon footprint.

Graham Kerr, the chief executive of South32, said some automakers were actively buying aluminum at a premium from its hydropowered smelters in Mozambique and its jointly owned renewable-powered smelter in Brazil, without being compelled under European Union law.