Constellium to lead £10m CirConAl project to develop lower carbon, lower cost recycled aluminium alloys with automakers and suppliers

Rhea-AI Summary

Constellium SE (NYSE: CSTM) leads the CirConAl project, a £10 million initiative supported by the UK's Advanced Propulsion Centre to develop low carbon, cost-effective aluminium extrusion alloys. The project aims to utilize post-consumer scrap to produce high-strength alloys with minimal CO₂ emissions. It focuses on enhancing scrap sorting technologies and meeting automotive OEM performance standards, promoting a circular economy. Constellium targets a 30% reduction in carbon emissions intensity by 2030 and aims for 50% of its aluminium to come from recycled sources.

Positive

• Leading CirConAl project to develop low carbon aluminium alloys could enhance market position.
• Supports UK’s initiative for zero-emissions vehicles, potential for government and industry collaboration.
• Commitment to reduce carbon emissions intensity by 30% by 2030 strengthens ESG profile.
• Targeting 50% recycled aluminium usage by 2030 aligns with sustainability trends.

Negative

• None.

PARIS, Dec. 02, 2022 (GLOBE NEWSWIRE) -- Constellium SE (NYSE: CSTM) announced today that it is leading a new consortium of automakers and suppliers to develop lower carbon, lower cost aluminium extrusion alloys. Sponsored by a grant from the UK’s Advanced Propulsion Centre (APC), the £10 million CirConAl (Circular and Constant Aluminium) project aims to maximize the use of post-consumer scrap in a new generation of high-strength alloys that emit less than two tons of CO₂ per ton of aluminium produced. CirConAl is part of joint government and industry support for projects to build an end-to-end supply chain for zero-emissions vehicles in the UK.

By designing, developing, prototyping, and testing aluminium automotive components at scale, the project is expected to demonstrate that high-strength alloys with high recycled content can meet or exceed OEM requirements, such as strength, crushability, durability, and other performance criteria. Together, the partners would also develop scrap sorting technologies to ensure that valuable metal is recycled into new automotive solutions rather than downcycled, preserving its value and contributing to a circular economy.

“Low carbon solutions require collaboration across the supply chain and Constellium is proud to lead the CirConAl project in partnership with the APC, automakers, and suppliers as the industry works toward carbon neutrality,” said Philippe Hoffmann, President of Constellium’s Automotive Structures & Industry Business Unit. “Taking advantage of Constellium’s high-strength HSA6^® aluminium extrusion alloys, as well as new scrap sorting and blending technologies, we expect this next generation of alloys to provide automakers with ultra-low embodied CO₂ material to drastically reduce the carbon footprint of their products.”

Aluminium extrusions and components for the CirConAl project will be prototyped and tested at Constellium’s University Technology Center (UTC) located at Brunel University London. The UTC is a center of excellence for the development of aluminium Crash Management Systems and body structure components, as well as battery enclosures for electric vehicles. Its industrial scale casting and extrusion equipment allows for rapid prototyping, reducing development times by at least 50% for the advanced alloys required to lightweight automotive components.

Constellium is committed to do its part in the fight against climate change, and to collaborate across the value-chain to help drive the low-carbon transition and promote a circular economy. The company has committed to reach a 30% reduction in its carbon emissions intensity by 2030 (scope 1, 2 and 3) vs. 2021, and pledged that at least 50 percent of all aluminium Constellium uses will be from recycled sources by 2030. Constellium recently joined the First Movers Coalition, a global coalition to decarbonize hard-to-abate sectors, and is a founding member of the Aluminium Stewardship Initiative.

About Constellium

Constellium (NYSE: CSTM) is a global sector leader that develops innovative, value added aluminium products for a broad scope of markets and applications, including aerospace, automotive and packaging. Constellium generated €6.2 billion of revenue in 2021.
www.constellium.com

Forward-looking statements

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Jason Hershiser - Investor Relations
Phone: +1 443 988 0600
investor-relations@constellium.com

Delphine Dahan-Kocher - Communications
Phone: +1 443 420 7860
delphine.dahan-kocher@contellium.com

FAQ

What is the CirConAl project by Constellium (CSTM)?

The CirConAl project is a £10 million initiative led by Constellium to develop low carbon aluminium extrusion alloys using post-consumer scrap.

How does Constellium (CSTM) plan to reduce carbon emissions?

Constellium aims to achieve a 30% reduction in carbon emissions intensity by 2030 compared to 2021.

What percentage of recycled aluminium does Constellium (CSTM) aim to use by 2030?

Constellium targets that at least 50% of its aluminium will be from recycled sources by 2030.

What are the expected benefits of the CirConAl project for automotive manufacturers?

The project aims to produce high-strength alloys that meet or exceed OEM requirements while significantly reducing CO₂ emissions.

What is the significance of the £10 million grant for Constellium (CSTM)?

The grant from the UK's Advanced Propulsion Centre supports the development of sustainable aluminium solutions, enhancing Constellium's role in the green transition.