Mercedes-Benz Signs Deal for Low Carbon Aluminum for Cars

Mercedes-Benz and Norway-based aluminum and renewable energy company Hydro announced the expansion of their partnership, aimed at decarbonizing the aluminum supply chain for the automaker’s next generation of large electrical vehicles.

As an initial step under the agreement, Mercedes-Benz said it is the first automaker in Europe to use Hydro’s recycled aluminum, Hydro CIRCAL, in the series production of its next generation of large electric vehicles. The recycled aluminum contains at least 75% post-consumer recycled material, up from around 25% in Mercedes-Benz’s currently supplied material, using recycling processes that recover aluminum from end-of-life vehicles, buildings and infrastructure for reuse in automotive applications.

According to the companies, the use of the recycled aluminum helps keep aluminum in circulation, reducing the need for new raw materials and lowering its overall CO₂ footprint.

The new agreement follows the signing by Mercedes-Benz and Hydro of a letter of intent in 2022 for a low-carbon technology roadmap for 2023 to 2030 for a low-carbon technology roadmap for 2023 to 2030, with the collaboration subsequently expanding in 2024 to encompass the entire aluminum value chain from raw material to finished product.

Mercedes-Benz already sources CO₂-reduced primary aluminum, Hydro REDUXA, for selected series-production components. Produced through electrolysis powered by renewable energy, the material has a carbon footprint more than 70% below the global average, according to the companies.

Eivind Kallevik, President and CEO of Hydro, said:

“By combining recycled aluminum Hydro CIRCAL with CO₂-reduced primary aluminum Hydro REDUXA, we can accelerate the transition to lower-carbon vehicles while building more resilient value chains. This partnership demonstrates how Hydro, as a leading supplier of recycled and CO₂-reduced aluminum, can deliver industrial-scale solutions that support both decarbonization and competitiveness.”

Mercedes-Benz’s sustainability goals include targets to achieve an 80% reduction in CO2 emissions from production by 2030, and for all production materials procured by Mercedes-Benz Cars and Mercedes-Benz Vans to be net carbon-neutral by 2039.

Yanni von Roy-Jiang, Head of Purchasing & Supplier Management at Mercedes-Benz AG, said:

“The next generation of automotive supply chains will be characterized by transparency, a circular economy, and strong regional value chains. Together with Hydro, we are shaping this future. We are demonstrating that resilient supply chains and lower emissions go hand in hand – and create long-term added value for our customers, our company, and society.”