Mercedes-Benz and Hydro are expanding their partnership to decarbonise aluminium across Europe, supporting efforts to cut emissions while supporting resilient value chains.
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Sustainable aluminium supply chain for low-carbon aluminium
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Ola Källenius, Chairman; Jörg Burzer, Mathias Geisen, Olaf Schick, Michael Schiebe, Britta Seeger, Oliver Thöne, Harald Wilhelm
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Sustainable aluminium supply chain for low-carbon aluminium
Mercedes-Benz and Hydro are expanding their partnership to decarbonise aluminium across Europe, supporting efforts to cut emissions while supporting resilient value chains.
As a first step, Mercedes-Benz will become the first automotive company in Europe to integrate Hydro CIRCAL into series production for the next generation of large electric vehicles. This recycled aluminium is made with at least 75 percent post-consumer recyclate, which represents a significant increase from around 25 percent in the material currently supplied. The material is produced through advanced recycling processes that recover aluminium from end-of-life vehicles, buildings, and infrastructure and return it to new automotive applications.
The next generation of automotive supply chains will be defined by higher levels of circularity, a lower carbon footprint, and a deeper level of localisation to enhance resilience and quality. Together with Hydro, we are helping to shape that future.
Yanni von Roy-Jiang
Head of Procurement & Supplier Management at Mercedes-Benz AG
Mercedes-Benz and Hydro continue to explore additional opportunities to reduce the carbon footprint of aluminium at industrial scale. At the core of the partnership is their collaboration on low-carbon primary aluminium. This includes sourcing additional volumes of Hydro REDUXA for Mercedes-Benz as well as a joint commitment to reducing the carbon footprint of this material over time.
As a complementary solution, with Hydro CIRCAL, the companies keep aluminium in circulation, helping meet growing demand, reducing the need for new raw materials and lowering the overall carbon footprint. This also demonstrates that high levels of post-consumer recycled content can be achieved without compromising stringent requirements for performance, quality and safety. At the same time, collecting, remaking and reusing aluminium close to production creates shorter, more efficient and more resilient regional supply chains.
The automotive industry needs materials that can cut emissions without compromising quality, safety or performance. By combining Hydro CIRCAL recycled aluminium with Hydro REDUXA low-carbon primary aluminium, we can accelerate the transition to lower-carbon vehicles while building more resilient value chains. This partnership shows how Hydro, as a leading supplier of recycled and low-carbon aluminium, can deliver industrial-scale solutions that support both decarbonisation and competitiveness.
Eivind Kallevik,
President and CEO of Hydro
Aluminium plays a central role in Mercedes-Benz’ materials strategy and Mercedes-Benz is working with its partners on the goal to decarbonise the aluminium supply chain. Hydro’s recycled and low-carbon products are produced using renewable energy and a high share of end-of-life scrap and backed by full supply chain transparency on a batch-by-batch basis.
In December 2022, the vehicle manufacturer brand and the Norwegian aluminium manufacturer Hydro signed a letter of intent (LoI) for a low-carbon technology roadmap between 2023 and 2030. In 2024, Mercedes-Benz and Hydro extended their collaboration to cover the entire aluminium value chain from raw material to finished product. Together, the companies launched the joint initiative Corridor Program in Brazil, strengthening social responsibility and human rights due diligence along the supply chain. Today, Mercedes-Benz already sources Hydro aluminium made using electrolysis powered by renewable energy (Hydro REDUXA) for selected aluminium components used in series production. With a carbon footprint more than 70 percent lower than the global average, it underlines the potential for further emission reductions in automotive applications.
With this partnership, both companies address a central challenge of the industry: combining decarbonisation with competitiveness. Regional value chains, resource efficiency and close cooperation along the supply chain are essential for the transition to low-carbon mobility.
Hydro is a Norwegian leading aluminium and energy company that builds businesses and partnerships for a more sustainable future. Since 1905, Hydro has turned natural resources into valuable products for people and businesses, creating a safe and secure workplace for our 31,000 employees in more than 140 locations and 40 countries. Today, they own and operate various businesses and have investments with a base in sustainable industries. Hydro is present in a broad range of market segments for aluminium and metal recycling, and energy and renewables. Hydro is committed to leading the way towards a more sustainable future, creating more viable societies by developing natural resources into products and solutions in innovative and efficient ways.
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