Apple and Industry Leaders Unite to Revolutionize Sustainable Supply Chains
Apple joins forces with metals and mining giants Alcoa and Rio Tinto in a groundbreaking initiative to create carbon-free aluminum and transform the supply chain.
Sustainability has rarely been linked with the metals and mining sectors, traditionally seen as environmentally harmful industries. However, Alcoa (AA) and Rio Tinto (RIO) are challenging this perception by collaborating on innovative solutions to reduce environmental impact.
In May, these two industry leaders announced a joint venture aimed at commercializing carbon-free aluminum production. This breakthrough technology promises to overhaul the century-old aluminum smelting process, which currently contributes heavily to greenhouse gas emissions. Globally, primary aluminum consumption reached 63 million tonnes in 2017, underscoring the significance of this advancement.
Based in Montreal, the joint venture, named Elysis, is set to eliminate direct greenhouse gas emissions from traditional aluminum smelting. Since 1886, aluminum production has relied on carbon-lined pots that emit harmful gases during smelting. Elysis introduces a cutting-edge conductive material to replace the carbon, releasing oxygen instead of carbon dioxide when an electrical current is applied to alumina (aluminum oxide). The plan includes retrofitting existing smelters and launching new facilities, with commercial-scale production expected by 2024.
Impact on Consumers and Industry
This collaboration significantly affects aluminum consumers and downstream metal product manufacturers. Alongside Alcoa and Rio Tinto's investment, Apple (AAPL) has contributed $10 million to Elysis’s research and development, complemented by $144 million in funding from the Canadian and Quebec governments.
Apple’s commitment to aluminum began in 2003 with its PowerBook laptops and has expanded since. The company prioritizes environmental responsibility, aiming for a closed-loop supply chain that relies on recycled or renewable materials. Aluminum accounts for nearly 25% of Apple’s manufacturing emissions, according to its 2018 Environmental Sustainability Report. Apple also strives to eliminate toxins in its production and recycling processes, safeguarding workers and minimizing environmental pollution.
In 2015, Apple engineers approached Alcoa seeking greener aluminum production methods. By 2017, Apple had successfully diverted 71% of its waste from landfills through recycling and composting. Recognizing Rio Tinto’s global expertise in mining, smelting, and commercialization, Apple brought them into the venture, appointing Rio executive Vincent Christ to lead Elysis.
The innovative aluminum production method pioneered by Alcoa and Rio Tinto could eradicate direct smelting emissions worldwide. This development may also bolster the integrated aluminum and manufacturing industries across Canada and the United States amid ongoing trade negotiations.
Advancing Sustainable Supply Chains
This initiative aligns with Apple’s broader sustainability goals, including powering all its facilities with 100% clean energy—a commitment echoed by 23 of its suppliers. Apple also introduced Daisy, a robot designed to efficiently dismantle iPhones for high-tech recycling, advancing the company’s vision to manufacture products entirely from recycled or renewable sources.
While Apple is a prominent example, global supply chains are undergoing significant transformations driven by increased awareness of sustainable business practices. Companies are prioritizing responsible sourcing, waste management, recycling programs, and transparent sustainability reporting to meet evolving expectations.
The metals and mining sector is embracing these shifts, with recycled scrap aluminum production surging from 1 million tonnes in 1980 to 17 million tonnes in 2016, as reported by the International Aluminum Institute. Recovering metals like gold and copper from electronic waste not only benefits the environment but is also 13 times more cost-effective than mining.
Electronics such as PCs offer multiple value streams for reuse or recycling. For example, Dell partnered with actress Nikki Reed to launch the Circular Collection, a jewelry line crafted from gold reclaimed through Dell’s recycling initiatives. Since 2012, Dell has transformed over 50 million pounds of post-consumer recycled materials into new products.
Projects like Elysis, Daisy, and the Circular Collection exemplify how innovative technologies are driving sustainability advancements across industries traditionally viewed as environmentally challenging.
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