Xiaomi’s 100% Recycled Aluminium Alloy Could Cut 450,000 Tonnes of CO2, But EV Losses Still Mount

Xiaomi launches Titan Alloy 2.0, a 100% recycled structural aluminium for EVs, cutting CO? by 93% per kg. But sales slide and losses persist amid China's EV slowdown.

Xiaomi has rolled out a manufacturing first in China’s electric-vehicle sector: a structural aluminium alloy made entirely from recycled material. The “Titan Alloy 2.0” is already in mass production, used in the rear underbodies of the SU7 and YU7 models. The company claims the shift to 100% recycled aluminium slashes the certified carbon footprint by roughly 93% compared with primary aluminium, with each kilogram emitting just 1.1?kgCO?e. Sweden’s IVL environmental research institute has independently verified the figures and registered them in the international EPD system.

The environmental benefit is substantial. Xiaomi estimates that each vehicle saves about 800?kg of CO?, and at a planned production run of 550,000 cars a year, the total reduction could reach 450,000 tonnes annually. The manufacturing process is multi-staged: a five-step pre-treatment, followed by melting and fine-tuning the composition, then direct feeding into automated gigacasting lines. Internal X?ray diagnostics check mechanical performance, and the China Machinery Industry Federation has validated the structural integrity.

Yet the timing of the innovation could hardly be more challenging. China’s EV delivery numbers have now fallen for six consecutive months, with June slipping 7% year?on?year. The first half of 2026 saw total deliveries drop 13% to 4.73 million units, and consultancy AlixPartners projects a full-year decline of as much as 27.7% for light vehicles. Price pressures in the market remain intense.

Xiaomi’s own EV division is feeling the squeeze. In the first quarter of 2026 it posted an operating loss of 3.1 billion yuan (roughly $457 million), equivalent to a loss of about $5,600 per vehicle sold. Deliveries did rise 6.6% quarter?on?quarter to 80,856 units, but the gross margin in the smart?EV segment contracted from 23.2% to 20.1%. Xiaomi attributed the margin erosion to reduced purchase?tax incentives, a lower proportion of the high?margin SU7 Ultra, and rising costs of key components.

The recent sales numbers for its main models underscore the headwinds. In May 2026, the Xiaomi SU7 moved 24,023 units, a 10.4% drop month?on?month and a 14.2% decline year?on?year. The newer YU7 delivered 8,736 vehicles, accounting for about 26.7% of the brand’s monthly volume. The Titan Alloy 2.0 is slated for wider adoption across the line?up, but it has not yet arrested the slide in the core model.

On the stock market, the shares have clawed back some ground from a 52?week low of €2.34 set on 26 June. On Monday the stock traded at €2.62, down 1.15% from Friday’s close but still showing a weekly gain of 6.70%. The price sits 14.05% below its 50?day moving average of €3.05 and 33.72% below the 200?day average of €3.95. At a relative strength index of 38.8 the shares are not yet oversold, and the 30?day annualised volatility stands at 33.06%.

Outside the EV business, Xiaomi has been strengthening its ecosystem. A new partnership with payment provider Adyen enables transaction processing in 18 markets through the latter’s unified commerce platform, supporting the group’s global expansion beyond cars.

Still, the EV division’s immediate challenges remain acute. The Titan Alloy 2.0 signals technological progress and a serious commitment to sustainability, but it does little to address the structural pressure on margins, the declining sales momentum of the SU7, or the broader contraction in China’s EV market. Until those factors turn, the stock’s recovery looks fragile.