Hydro and Mercedes-Benz are expanding their partnership to increase the use of recycled and low-carbon aluminum across Europe. The companies will support opportunities to cut emissions at industrial scale, while also strengthening already resilient value chains.
“The next generation of automotive supply chains will be defined by higher levels of circularity, a lower-carbon footprint and a deeper level of localization to enhance resilience and quality,” said Yanni von Roy-Jiang, head of Procurement & Supplier Management at Mercedes-Benz AG. “Together with Hydro, we are helping to shape that future.”
Sourcing Low-Carbon Aluminum
At the core of the partnership between Hydro and Mercedes-Benz is a collaboration on low-carbon primary aluminum. 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, 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. CIRCAL is made with at least 75% post-consumer scrap, a significant increase from today’s minimum of 25%. This material is produced through advanced recycling processes that recover aluminum from end-of-life vehicles, buildings, and infrastructure and return it to new automotive applications. Not only does this material reduce carbon emissions, but it also demonstrates that high levels of post-consumer recycled content can be achieved without compromising stringent requirements for performance, quality and safety.
With Hydro CIRCAL, aluminum is kept in circulation — helping to meet growing demand, reducing the need for new raw materials, and lowering the overall carbon footprint. At the same time, collecting, remaking and reusing aluminum scrap 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,” said Eivind Kallevik, president and CEO of Hydro. “By combining Hydro CIRCAL recycled aluminum with Hydro REDUXA low-carbon primary aluminum, 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 aluminum, can deliver industrial scale solutions that support both decarbonization and competitiveness.”
Full Value Chain Circularity
Aluminum plays a central role in Mercedes-Benz’s materials strategy, and the company is working with its partners to decarbonize the aluminum supply chain. For example, in December 2022, Hydro and Mercedes-Benz signed a letter of intent for a low-carbon technology roadmap between 2023 and 2030. The companies extended their collaboration in 2024 to cover the entire aluminum value chain, from raw material to finished product.
Together the companies launched the joint initiative Corridor Program in Brazil, combining decarbonization with social responsibility along the supply chain. Today, Mercedes-Benz sources Hydro REDUXA, a low-carbon aluminum made using electrolysis powered by renewable energy, with a carbon footprint more than 70% lower than the global average. This underlines the potential for further emission reductions in automotive applications.
With this partnership, both companies address a central challenge of the industry, combining decarbonization with competitiveness. Regional value chains, resource efficiency, and close cooperation along the supply chain are essential for the transition to low-carbon mobility.