Automobile sustainable raw materials: Going green beyond electrification

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  Quantumrun Foresight
• August 9, 2023

Insight highlights

By 2040, production materials will account for 60% of auto emissions, prompting sustainable shifts like 'vegan' leathers. BMW and Audi use recycled materials in their models, while Volvo focuses on sustainable leather substitutes. Startups like Karuun and Bcomp offer innovative materials, including rattan and natural-fiber reinforcements, respectively. This transition towards sustainability may lead to job creation, stricter regulations, consumer preference changes, technology advancement, reduced environmental impact, localized supply chains, and enhanced corporate reputations.

Sustainable raw materials for automobiles context

Consulting firm McKinsey projects that by 2040, materials used in production will account for 60 percent of emissions in the automotive industry. Therefore, it is crucial to intensify decarbonization efforts in this domain. Many manufacturers prioritize replacing leather with 'vegan' alternatives. While utilizing faux or synthetic leather has been around for years, automakers aim to elevate this practice by introducing more eco-friendly options. Vegan leather can be crafted from a wide range of natural resources, including mushrooms and pineapple waste, which offers significant potential for sustainable sourcing.

Several brands are already incorporating sustainable materials in their models. BMW’s electric iX SUV’s carpets and floor mats are crafted from Econyl, a type of nylon derived from repurposed fishing nets and waste byproducts from plastic production. According to BMW, using recycled plastics results in an 80 percent reduction in carbon emissions compared to traditional petroleum-based nylon. Additionally, the iX features leather upholstery treated with olive leaf extract, which is collected after the yearly trimming of European olive trees.

Meanwhile, Audi’s fourth-generation A3 sedan features seat covers made from recycled materials, incorporating up to 45 large polyethylene terephthalate (PET) bottles each. PET is a synthetic component used in both plastic bottles and long-lasting fabrics. Consequently, it's well-suited for creating durable seat covers. Other materials being considered by automakers are bamboo, biofabricated silk, and aluminum.

Disruptive impact

Automakers will likely invest in more sustainable materials as the demand for more eco-friendly vehicles increases. Swedish automaker Volvo has committed to making its electric vehicle lineup vegan-friendly by 2030, and other high-end manufacturers are similarly keen on investigating sustainable leather substitutes. BMW is partnering with Desserto, a firm that produces a cactus-derived biomaterial capable of replacing leather in seats and panels. 

Startups will likely leverage the sustainable market to develop alternative materials that might appeal to automakers. For example, German company Karuun utilizes rattan, a non-timber product sourced from Indonesia, where the raw material is hand-harvested and processed onsite. This approach has attracted Jaguar Land Rover and Chinese electric vehicle manufacturer Nio.

Bio-based materials offer the additional benefit of reducing weight, thus enhancing energy and emissions savings. Green materials company Bcomp specializes in automotive products that incorporate natural-fiber reinforcements for sustainable lightweighting, a concept focused on decreasing vehicle weight to boost performance and efficiency. The company has attracted BMW, Porsche, and Volvo investments. Bcomp's products can reduce weight by up to 50 percent and plastic usage by 70 percent in interior panels. The components are based on flax fibers sourced from European plants, which can serve as a substitute for emissions-intensive materials like plastic, carbon, and glass fibers.

Implications of sustainable raw materials for automobiles

Wider implications of sustainable raw materials for automobiles may include: 

• Job creation in the development, production, and recycling of sustainable materials.
• Governments establishing more stringent regulations and incentives to promote the use of sustainable materials in the automotive industry. This trend could lead to the development of more environmentally-friendly policies and encourage international cooperation on sustainability goals.
• A shift in consumer preferences, with more people choosing vehicles that prioritize environmental responsibility, resulting in younger and more environmentally-conscious individuals driving the automobile market.
• More innovation and development of new technologies for sourcing, processing, and utilizing sustainable materials in automotive manufacturing. This trend could lead to advancements in material sciences, biotechnology, and other related fields.
• Widespread adoption of sustainable materials reducing the environmental impact of the automotive industry. This trend could lead to reduced emissions, lower waste production, and decreased resource depletion.
• More localized supply chains to reduce transportation emissions and environmental impacts, leading to increased supply chain resilience and reduced dependency on geopolitically sensitive resources.
• The use of sustainable materials enhancing a company's reputation for corporate social responsibility, leading to increased brand loyalty and consumer trust. 
• Automakers that adopted sustainable practices earlier being able to comply with new regulations and avoid penalties or sanctions, giving them a more competitive advantage.

Questions to consider

• What features and materials do you look for in a vehicle?
• How can governments further incentivize automakers to shift to sustainable materials?