Rio Tinto Group (ASX: RIO) (NYSE: RIO) (LON: RIO) signed a five year partnership with cable provider, Prysmian, to build a more sustainable North American supply chain for materials required to expand power grids.
The companies announced the collaboration on Monday. Prysmian will work with Rio Tinto’s Canadian operations to produce low-carbon aluminium using renewable hydropower, supporting Prysmian’s efforts in decarbonization.
The U.S. Energy Information Administration anticipates that power generation from renewable energy will increase from 21 per cent in 2021 to 44 per cent in 2050. Achieving this will necessitate substantial investments in power grids and a heightened demand for innovative materials utilized in electrification projects.
Rio Tinto and Prysmian have additionally inked a joint development agreement. This agreement aims to harness their technologies, research and development capabilities to aid in meeting the increasing electrification demand in North America.
“We are proud to work together with Prysmian to strengthen their North American supply chain for aluminium produced to the highest sustainability standards and develop the materials needed to produce more advanced power cables,” said Amy Abraham, Rio Tinto’s vice president of Aluminium sales.
“These types of products are critical for the power grid expansion that is needed for the transition to renewable energy sources and a low carbon future.”
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Aluminium market to grow at 6.1 per cent annually until 2032
Market research company, Precedence Research estimates the global aluminium market size at USD $159 billion in 2022, with expectations of reaching approximately USD$286.07 billion by 2032. The market is projected to grow at a compound annual growth rate (CAGR) of 6.1 per cent from 2023 to 2032. In 2022, the Asia Pacific market held a 65 per cent market share.
Aluminium’s importance in the green energy transition is underscored by its lightweight and high strength-to-weight ratio, making it a valuable material for electric vehicles (EVs) and aircraft. It requires far less energy than primary aluminium production, lowering the overall environmental impact and energy consumption of the industry.
Aluminium also plays a role in emerging battery technologies like aluminium-ion batteries, offering potential eco-friendly and cost-effective energy storage solutions for supporting renewable energy systems. Lastly, in the construction of solar panels and wind turbines, aluminium’s properties contribute to the generation of clean, renewable energy.
The transition to green energy is vital due to its role in mitigating climate change, securing reliable energy sources, generating employment and enhancing public health, all of which are necessary for a sustainable future.
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