Aluminium, known for its lightweight, durability, and infinite recyclability, plays a crucial role in developing more efficient and sustainable vehicles. It is extensively used in both structural and propulsion components. With the introduction of the Green Mobility and Innovation (Mover) program, its significance in the Brazilian automotive industry is set to grow even further.
Promoting increased use of aluminium in Brazil
This initiative will promote increased use of aluminium and unlock new opportunities within the sector. Sanctioned in June 2024 by President Luiz Inácio Lula da Silva, the Mover program is designed to accelerate the decarbonisation of Brazil's automotive sector. It emphasises the development and production of electric and hybrid vehicles featuring aluminium and alternative fuels. Replacing the Rota 2030 initiative, Mover offers tax incentives for companies investing in research and development and sets mandatory recycling thresholds for vehicle production.
The program also establishes the National Fund for Industrial and Technological Development (FNDIT), managed by the National Bank for Economic and Social Development (BNDES), and introduces the IPI Verde system, which reduces taxes for companies that pollute less. With a total of R$19.3 billion allocated for financial credits between 2024 and 2028, Mover enables companies to lower federal taxes through investments in R&D and new production initiatives.
About Mover program
At the 9th International Aluminum Congress, hosted by the Brazilian Aluminum Association (ABAL) in April, Camilo Adas, Technology and Energy Transition advisor at SAE Brasil spoke during the panel "Aluminum Revolutionizing Green Mobility" about the pivotal role of the Mover program in advancing a more sustainable and innovative automotive sector in Brazil.
He underscored that the Mover program aligns with global demands for cleaner and more efficient technologies. Adas highlighted that aluminium, with its unique properties, is a strategic asset in this transition, helping to reduce emissions and enhance vehicle energy efficiency.
Objective of the Mover program
A key objective of the Mover program is to cut carbon emissions by promoting the transition from traditional internal combustion engine vehicles to electric and hybrid models. This initiative supports Brazil’s broader commitment to decarbonize its industries, address climate change, and achieve sustainability. The program offers substantial financial incentives to companies for investing in research and development (R&D). This funding is anticipated to drive technological advancements, making electric vehicles (EVs) more affordable and accessible.
Mover aims to stimulate economic growth by encouraging innovation and modernization in the automotive sector. The program is expected to create new jobs, particularly in manufacturing, R&D, and infrastructure development. In addition to vehicle innovation, Mover supports the creation of essential infrastructure, such as charging stations, to ensure a smooth and efficient transition to electric vehicles.
MiBi project
Erwin Franieck, Executive Director of SAE4Mobility and Executive Secretary of the MiBi project – Made in Brazil Unlimited, also spoke at the panel during the congress. He emphasised aluminium's critical role in several MiBi Working Groups (GT) established by the Ministry of Economy. Franieck noted that aluminium is not only essential for producing lithium batteries but is also used in electromechanical components, forged wheels, and other items that significantly influence the competitiveness of Brazil's automotive industry.
"The automotive and mobility industry increasingly demands aluminium, and Brazil, with its potential, can lead this growth. By exploring the benefits of the Mover program , which encourages sustainability and innovation, and adopting the concept of a complete life cycle of materials, from 'cradle to grave', we can achieve a promising future for the sector", added Erwin Franieck.
MiBi is focused on mapping needs and opportunities within the value chain to enhance the industry's competitiveness, remove barriers to domestic production, and ensure a steady supply to the Brazilian market. The project relies on the voluntary collaboration of various entities, including the Brazilian Aluminum Association (ABAL), the National Association of Automotive Vehicle Manufacturers (Anfavea), and the National Union of the Automotive Components Industry (Sindipeças), among others. These groups work together to find solutions that reduce imports of items Brazil can produce locally.
Franieck highlighted a significant finding from the MiBi Working Groups (GTs): despite having high-quality, low-cost minerals available, Brazil primarily imports metal parts. This discrepancy underscores the potential for boosting domestic production capabilities.
Incentive to reduce emissions
Norsk Hydro Brasil views the Mover program as a significant advancement in promoting sustainability within the aluminium sector. Anderson Baranov, the company's CEO, notes that incentives for reducing carbon emissions are crucial for recognising and supporting companies dedicated to environmental protection.
"Globally, especially in Europe, there are already incentive mechanisms for companies to control their carbon emissions. To be competitive externally, the Brazilian production sector needs to adapt in order to meet requirements – which are expected to continue to increase. Incentives that take into account the characteristics of the Brazilian sector are essential for this movement to be complete," commented Baranov.
Hydro has already made substantial investments in low-carbon aluminium production technologies. At Alunorte, the transition to natural gas and installing electric boilers are expected to cut emissions by 30 per cent by 2024. The company has set ambitious targets to reduce emissions by 70 per cent by 2030 and achieve zero emissions by 2050.
At its mining site in Paragominas (PA), Hydro started incorporating electric vehicles into its operations in 2023, replacing conventional diesel-powered models. These electric cars comprise 10 per cent of the light vehicle fleet. This shift is expected to reduce CO2 emissions by 600 tonnes over five years, equivalent to planting 1,660 trees.
Ongoing projects
Maxion Structural Components, a global leader in automotive structural components, is advancing innovation in the aluminium sector through the Mover program. The company aims to develop lighter, more efficient, sustainable solutions for the automotive industry.
At the 9th International Aluminum Congress, Marco Tulio Ribeiro Ricci, the company's Global Director of Innovation and Strategy, showcased Maxion's achievements in developing an aluminium side member and a bus battery cradle. Both innovations are designed to reduce weight and cost, underscoring Maxion's commitment to enhancing efficiency and sustainability.
For the bus battery cradle, developed in collaboration with Novelis and CBA, Maxion surpassed its weight reduction target by 30 per cent, achieving a remarkable 64 per cent reduction. Additionally, the aluminium solution proved more cost-effective than the steel version, challenging the market perception that lighter materials are inherently more expensive.
"We start from the customer's problem to find the best solution, testing both the application and the processing of the material. As for the aluminium side member, an essential component in the vehicle's structure, Maxion has managed to create an alloy capable of withstanding the stresses required, while also ensuring an efficient and low-cost manufacturing process," explains Ricci.
Embrapii leveraging resources from Mover program
The National Industrial Training Service (SENAI) and the Brazilian Industrial Innovation Company (Embrapii) are leveraging resources from the Mover program to advance several transformative projects in the Brazilian automotive and energy sectors. One such project focuses on achieving technological independence in lithium-ion battery production, involving key industry players, including prominent aluminium companies like CBA and Novelis.
The initiative aims to develop cylindrical and prismatic lithium-ion cells in a pre-industrial setting, thereby fostering the national value chain for lithium-ion battery technology. The project is expected to boost the economy, create jobs, and support a more sustainable future by enhancing electric vehicle production and renewable energy storage.
Responses
