1. Drivers for Growth in Automotive
Aluminum Demand
Jack Pell and JD Rutt
Hydro
on behalf of
The Aluminum Association,
Aluminum Transportation Group (ATG)

2. The Aluminum Association’s
Aluminum Transportation Group
(ATG)
www.aluminumintransportation.org
2

3. Aluminum Growth Factors
to Consider:
• Existing aluminum applications
• Impact of federal regulations
• Weight reduction and fuel economy improvement
• Weight reduction and energy consumption
• Benefits to alternative/electric vehicle technology
• A future with automotive aluminum

4. 50 Years of Uninterrupted
Automotive Aluminum Growth
12% 11.3%
10.0%
10%
8.8% 394
7.8% Pounds
8% 6.9%
6.1% 334
6% 5.1% Pounds
4.5%
77
3.9%
4% Pounds
2.0% 2.1%
2%
Historical Forecast
0%
Calendar Year 1970 1975 1980 1985 1990 1995 2000 2005 2010F 2015F 2020F
Aluminum Share as Percentage of Curb Weight
Auto Aluminum Content
North America - Percent of Curb Weight

5. Existing Aluminum Applications
• Today’s vehicle contains about 10% by weight
• Many vehicles in the U.S. fleet use 400-500 pounds of aluminum
• More than 95% of automotive aluminum is recycled

6. Body Holds the Largest Weight
Reduction Opportunity
12,000
•Shift to aluminum saves
Currently Aluminum
550 lbs. direct and 10,000
Aluminum Opportunity
secondary weight
KMT Aluminum
8,000
6,000
•10% better fuel economy
4,000
•No compromise to safety 2,000
•No downsizing required 0
•Better performance
•Lower lifetime CO2
Source: The Aluminum Association
6

7. U.S. Faces Stricter
Fuel Economy Regs
• April 2010: the Obama Administration established
regulation that, starting with 2012 model year vehicles,
requires automakers to reduce fleet-wide greenhouse
gas emissions by approximately 5% every year and
strengthen fuel economy each year, reaching an
estimated 34.1 mpg for the combined industry-wide
fleet for model year 2016
• October 2010: the Obama Administration announced
next steps toward establishing tighter fuel economy
and emissions standards for 2017 through 2025 model-
year vehicles
7

8. Down Weighting Key to Solution
• Weight reduction will be part of the solution to meet
the new regulation bench marks
– Nissan recently announced plans to start
reductions at 15%
– GM recently announced plans to trim 500 lbs. from
its light trucks by 2016, and by the early 2020s,
may cut as much as 1,000 lbs. per truck
• Aluminum already offers great weight saving for less
CO2 than competing materials
8

9. Weight Savings Translates to Fuel
Economy Improvement
Mass of Body-in-White Fuel Economy Improvement
400 3 2.7 MPG
Miles per Gallon
Improvement
Kilograms
350
2.5
300
250 2
200 1.5
150
1
100
0.5
50
0 0
Steel (baseline) High Strength Aluminum Steel (baseline- High Strength Aluminum
Steel Intensive Intensive 30 mpg) Steel Intensive Intensive
Source: ika - University of Aachen and the Source: The Aluminum Association
European Aluminium Association (EAA) calculated based on ika mass reduction data;
assumes 23% secondary weight savings 9

10. Greatest Potential with Smallest
CO2 Footprint
• The aluminum industry has
cut greenhouse gas factory
emissions per ton of
aluminum produced by
30% since 1990, and aims
to be carbon neutral by
2030
• Aluminum has lower life
cycle CO2 emissions than
steel or high strength steel
• 20 lbs of CO2 is saved for
every pound used Source: Magnesium Industry Life Cycle Study 10

11. Down Weighting Creates Value for
Alternative Powertrains
Percent Increase in MPG Cost per 1 MPG Increase
60.0% $300
50.0% $250
40.0% $200
30.0% $150
20.0% $100
10.0% $50
0.0% $0
Baseline Diesel Hybrid Baseline Diesel Hybrid
Steel Body Aluminum Body Steel Body Aluminum Body
Source: IBIS Associates 11

12. PEV and PHEV Study
$3 Battery Cost Savings Per $1 Invested in Electric Vehicles
Objective:
• Evaluate the impact of vehicle weight reduction on electric
vehicle performance, range and battery size
Results:
• Reduced battery cost: $900 - $1,950 (@ $750/KWh)
• EV weight reduction potential: 19%
• 10% mass reduction: 4 - 6% reduction in battery size
• Expected aluminum structure cost premium: $630
20% reduced vehicle mass yields a 20% range increase
Source: Ricardo 12

13. Time for Down Weighting is Now
• A necessity in the holistic approach to meeting U.S.
and global regulations without sacrificing safety or
functionality
• The only fuel saving technology that complements
advanced powertrains
• Offers more CO2 and fuel savings than other
materials
• Transition can happen faster than alternative
powertrain breakthroughs while preserving U.S. jobs

14. Drivers for Growth in Automotive
Aluminum Demand
Thank You
www.aluminumintransportation.org