Is Natural Fiber the Future of Automotive Composites?

Automobiles are one of the leading contributors to carbon dioxide (CO₂) emissions. Notably, it’s not just tailpipe emissions during use that are responsible. Automobile production also contributes to greenhouse gas emissions, specifically CO₂ emissions.

Energy-intensive manufacturing processes for materials like steel, as well as the production of components such as batteries for electric vehicles, also play a big role in climate change.

As a result, the automotive industry is actively working on reducing CO₂e in production. CO₂e, or Carbon Dioxide Equivalent, is a standard unit for measuring and comparing the impact of various greenhouse gases on global warming. 

To achieve this, automakers are employing various strategies, including the incorporation of sustainable materials, optimization of manufacturing processes, and the adoption of new technologies.

Most recently, BMW Group (BMW-DE:XETRA) announced achieving a major breakthrough with the utilization of natural fiber composites, which will now be used for its series-production models following several years of development and in-depth research. 

BMW’s Breakthrough with Natural Flax Fiber Composites

The world's leading premium manufacturer of automobiles and motorcycles first utilized renewable raw materials in BMW M Motorsport during the 2019 Formula E season and then in the BMW M4 DTM and M4 GT4, where natural fiber composites replaced carbon fiber plastic (CFRP) parts. 

CFRP is a high-tech material that involves combining carbon fibers with other materials to form a composite. It is well-received in most industries, including the automotive industry. While better than other lightweight materials, it is expensive because of the raw material.

So, companies like the German automaker have been turning to natural fiber composites. As BMW Group noted back in 2022, almost all the elements in BMW M4 GT4 that were made of CFRP were replaced with innovative composites made of natural fibers. The company said the following at the time:

“There is no other GT racing car in series production matching the amount of natural fiber composite parts.” 

The flax fiber solutions were incorporated throughout the vehicle, including the interior, on the dashboard and centre console, as well as bodywork components such as the hood, front splitter, trunk, rear wing, and doors. Barring the vehicle’s roof, nothing involved CFRP. Even that is changing now, with composites made from renewable raw materials meeting even the most rigorous demands for roof structures set by the government in certifying a vehicle’s roadworthiness, as per the BMW Group’s latest report.

Replacing carbon fiber composites with natural fiber composites in the roof of the next-generation BMW Group vehicle leads to a CO_₂e-reduction of around 40% in production, plus additional end-of-life considerations, it noted.

For these natural flax-based lightweight components, BMW has collaborated with Bcomp, a Swiss clean-tech company, in which it also holds a stake through BMW i Ventures, the venture capital arm of the Munich-based carmaker that invests in fast-scaling startups in the automotive environment, helping shape mobility.

Besides BMW, Generali, and Airbus Ventures, as well as high-profile OEMs like Porsche Ventures and Volvo Cars Tech Fund, have also made investments in Bcomp to help it develop “high-performance decarbonisation solutions.”

Bcomp has developed the powerRibs reinforcement technology, which took inspiration from leaf veins and created a 3D structure on one side of a thin-walled shell element to maximize stiffness with minimal weight. Then, ampliTex reinforcements added a visible layer of flax fibers for the covering material.

This allowed the company to reduce the amount of plastic used for interior panelling by as much as 70% and cut CO₂ emissions by 60%, with the added benefit of improved safety due to the absence of sharp debris and splinters. Renewable raw materials and natural fibers used here include hemp, kenaf, and flax, which have helped the company reduce the weight by approximately 50% compared to conventional materials.

After taking the use of innovative composite solutions to the next level with BMW M4 GT4, the company is now taking it to a whole new level by taking advantage of natural fiber composites for the series production of future models.

Building lightweight materials remains a crucial focus for automakers, along with the growing importance of using natural fibers, which offer a reduced carbon footprint in composite materials.

“Natural fiber composites are a vital element of innovative lightweight solutions in motorsport, allowing for a reduction in CO_₂e emissions in the manufacturing process.”

– BMW M GmbH CEO, Franciscus van Meel

According to BMW Group, assessment of materials has shown the great suitability of fibers, especially for visible exterior and interior components. And now, the lightweight materials will experience their ultimate performance test. They have been fitted in the BMW M4 GT4 for the 24-hour race on the Nürburgring. Franciscus van Meel added:

“Natural fiber is an innovation that perfectly exemplifies BMW M’s claim ‘Born on the racetrack. Made for the streets.’. This is why we are delighted to confirm the series maturity of these materials, a breakthrough we achieved with our official #BMW M Motorsport partner Bcomp. We are now looking forward to the use of these materials in future BMW M product ranges.”

Why Natural Fiber Composites Matter in the Auto Industry

Composites play a significant role in material industries for their cost-effectiveness and environmental friendliness. A composite material is simply a material produced by combining two or more constituent materials.

Combining materials with different characteristics gives composite materials special properties such as increased strength, reduced weight, or enhanced durability. This makes them crucial in numerous industries. 

Some of the most common composite materials are fiberglass, carbon fiber, concrete, reinforced plastics, ceramic matrix composites, and others.

Glass Fiber Reinforced Polymers (GFRP) and Carbon Fiber Reinforced Polymers (CFRP), meanwhile, are the most popular composites used in the automotive industry to manufacture cars due to their high strength-to-weight ratios, corrosion resistance, flexibility, durability, and ability to contribute to fuel efficiency and crashworthiness.

However, a global shift towards renewable energy and sustainable practices, which has also driven automakers to turn to electric cars, is also driving the adoption of natural fiber composites.

Legislation requiring automotive manufacturers to reuse and recycle materials is another reason why the use of natural fibers in composite materials is growing. As a result, we are seeing an increase in the usage of bio-based materials in the automotive industry. 

They are actually playing a huge role in making the sector cleaner and greener while offering substantial benefits.

This includes improving efficiency and reducing weight. Natural fiber composites are lightweight in nature, and by using them to manufacture car parts such as dashboards, door panels, and other interior components, the vehicle's weight can be reduced. This reduction in weight also means less energy is needed to move the car, resulting in lower fuel consumption. 

Another great benefit of natural fiber composites is their strength and ability to withstand daily wear and tear, which enhances the durability and reliability of the vehicle.

More importantly, natural fibers are renewable resources, which puts sustainability right at their core. Using these composites allows carmakers to reduce their reliance on harmful materials based on fossil fuels, in turn cutting down their emissions. 

In the realm of natural fibers, which are proving to be highly useful for material industries, hemp, jute, sisal, flax, bamboo, rice, and kenaf are among the most popular options.

Among these, flax is the most widely used material in composites due to its superior mechanical properties compared to other natural fibers. This one comes from the stem of the flax or linseed plant. Flax fabric is commonly known as linen and is among the oldest known textiles.

Its cellulose fibers, which are long and continuous, make it viable as a reinforcement material in composites due to their excellent stiffness and tensile strength. Flax also has a unique natural appearance. 

Being biodegradable in nature, low in cost, and light in weight, natural fibers are typically combined with polymers to create strong and durable materials for car components, as they lack the mechanical properties of synthetic fibers.

For instance, the hardness of carbon fiber is over 75% more than that of flax fiber. Carbon fiber is also five times stronger than flax fiber, while glass fiber is four times stronger.

Moreover, the flexural modulus of synthetic fiber is also moderately higher than that of natural fiber. However, the wear rate of natural fiber is low, making it suitable for use in abrasive environments. While the vibration frequency of natural fiber is about the same as that of synthetic fibers, the impact energy storage capacity of glass fiber is more than that of carbon, flex, and kenaf fiber.

Not to mention, natural fibers are moisture sensitive. Besides concerns over the quality and consistency of these fibers, their bonding with polymer matrices is also weak. Natural-fiber Composites (NFC) made by combining natural fibers with different synthetic fibers are expected to be the new revolution in composite materials.

Already, natural fiber composites are being used extensively by automakers. Besides BMW, Ford (F -1.06%) has been experimenting with natural fiber composites for more than a decade to create sustainable car interiors. 

Mercedes-Benz (MBG-DE:XETRA) is another one making strides in using natural fibers, particularly in their interior panels. Parts of its models A-class, C-class, E-class, and S-class have been fabricated using different natural fibers, including sisal, hemp, wool, and flax.

A few years ago, Bcomp reported supplying its high-performance natural fiber technologies to Mercedes-AMG’s development partner HWA AG for the front bumpers on Mercedes-AMG GT4 race cars. Making the bumper from full natural fiber allows it to be used for thermal energy recovery, turning about 80% of the energy stored in it into renewable energy.

How Motorsports Drive Natural Fiber Tech to Mass Market

Automobile manufacturers worldwide are actively incorporating natural fiber composites into their vehicles, primarily for interior and exterior applications, to achieve weight reduction and enhanced sustainability. 

The BMW Group, in particular, has reached series maturity with natural fiber composites and is now ready for series production, having successfully utilized them in race cars. This essentially brings innovative material technology and its benefits, initially limited to premium and luxury cars, to the masses.

This isn't the first time high-end sports cars have helped bring advancements to the mainstream. Auto manufacturers are known for using their high-performance automobiles as incubators for technology.  

This actually makes sense. High-end cars tend to be very expensive and built in low volumes, which means manufacturers can afford to experiment with them. They can be used as a testing ground for advanced materials and techniques before they become cost-effective and scalable for mass production. 

Over time, materials, processes, and technology, all tend to trickle down to mainstream cars, which can be seen throughout history. Among new materials, carbon fiber is a great example. 

For over a century, steel was the primary material in cars, until aluminum gained popularity in the late 1900s as a lighter alternative to steel. Its lightweight made it an attractive candidate for racecars, which need to be light to achieve extreme speed. However, it is primarily used for the engine block because, while it is light, fuel-efficient, and corrosion-resistant, it isn’t particularly strong and is also expensive. 

That was when carbon fiber came and revolutionized the industry. It was widely used in Formula 1 and hypercars due to its incredible strength-to-weight ratio.

Lighter than both steel and aluminum, carbon fiber enables auto manufacturers to reduce vehicle weight while enhancing performance and fuel efficiency. It even offers better energy absorption in crashes, making it ideal for race cars, which require significantly more safety features and structural integrity than standard cars. This is the reason why the body of a Formula One race car is almost entirely made of carbon fiber. 

So, after McLaren unveiled the first carbon fiber F1 car in the 1980s, other F1 teams started catching up, and then eventually the idea originally developed for the racetrack trickled down to the normal roads with McLaren's 1992 F1 being the first to make use of carbon fiber composites, followed by Ferrari and Lamborghini.

However, the higher cost of composite materials and the complexity of their manufacturing process mean that only specific parts of the cars are made from carbon fiber or carbon fiber-reinforced composites (CFRP). 

Similarly, ultra-high-strength steels and carbon-ceramic brakes have also found their way into everyday cars. Materials aren’t the only innovation, though, that has made their progress from high-end sports cars to the mainstream.

Processes like additive manufacturing, which carmakers have started exploring to 3D print various parts of premium cars, are another example. Once the processes scaled up, the makers applied them to mass-market parts with ease.

Sustainability innovation is yet another major one. Besides natural fiber composites, exotic brands have implemented bio-based composites, recycled carbon fibers, and greener aluminum production to meet emission requirements. 

Besides acting as a testing bed for eco-friendly materials, technologies such as transmissions, suspensions, disc brakes, sophisticated infotainment systems, and advanced safety equipment were also first incorporated in high-end cars in some form or another.

So, high-end sports cars basically allow manufacturers to test cutting-edge technologies and design features cost-effectively before they can be produced for the masses, which involves limitations like cost, inflexibility, lack of customization, potential decreased quality, and risks of unsold inventory. 

By introducing novel capabilities in these premium, limited-edition models, manufacturers gain better control over the technology and processes, allowing them to set new benchmarks while also enabling others to innovate.

Investing in Natural Fiber Composite Tech

A leader in composite materials, Hexcel Corporation’s product range includes carbon fiber for use in commercial aerospace, space and defense, and industrial applications. It is also involved in specialty reinforcements and other fiber-reinforced matrix materials, resins, honeycomb, and composite structures.

A few years ago, Hexcel announced the development of a new product range that combined its bio-derived resin content with natural fiber reinforcements to create material solutions for automotive and other applications.

At the time, the company noted that its HexPly Nature Range offers manufacturers the choice to make the switch from petroleum-based material solutions to biobased ones without compromising performance or process efficiency.

Hexcel Corp (HXL +1.13%) 

When it comes to Hexcel’s market performance, it has a market cap of $4.57 billion as HXL shares trade at $56.87, down 9.3% YTD. With that, it has an EPS (TTM) of 1.51 and a P/E (TTM) of 37.66. The dividend yield offered is 1.20%.

As for financials, the company reported $457 million in sales for the Q1 of 2025, comprising $280.1 million in Commercial Aerospace and $176.4 million in Defense, Space & Other. GAAP diluted EPS, meanwhile, was $0.35, and adjusted diluted EPS was $0.37. Gross margin for the quarter was 22.4%.

In Q1 2025, net cash used for operating activities was $28.5 million, and capital expenditures on a cash basis were $26.1 million. Free cash flow, meanwhile, was ($54.6) million.

During this period, Hexcel returned $64 million to stockholders through share repurchases and dividends. It also refinanced $300 million of fixed-rate debt.

“The underlying value proposition of Hexcel remains robust, driven by the demand for our innovative lightweight composites, which will generate strong cyclical and secular sales growth over time.”

– CEO Tom Gentile

Latest Hexcel Corp (HXL) Stock News and Developments

Final Thoughts: The Future of Natural Fiber in Cars

As automakers work to achieve decarbonization goals, natural fibers are set to play a crucial role. While carbon fiber remains valuable for its unmatched strength, natural fiber composites, particularly flax-based solutions, are gaining traction due to their potential to revolutionize automotive production. 

By reducing carbon emissions, enabling lightweight designs, and meeting stringent performance needs, natural fiber composites represent a compelling alternative to carbon fiber. These natural composites promise to be the next significant innovation, helping scale sustainable mobility from premium sports cars to everyday vehicles and driving the automotive industry toward a greener future.