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Hydro and Porsche to Launch New Business Model for Low-Carbon Aluminum Supplies

Eivind Kallevik, president and CEO of Hydro, and Barbara Frenkel, executive board member for procurement at Porsche AG. (Photo: Jens Christian Boysen, Hydro.)

Hydro signed a new agreement with German sports car manufacturer Porsche AG to expand their joint efforts to decarbonize the automotive supply chain. The aim of the agreement is to pioneer a new business model for low-carbon aluminum that will drive sustainability and transparency in the automotive industry.

“With this collaboration, we bring an innovative business model to the market to allow industries to further decarbonize their supply chains,” said Eivind Kallevik, president and CEO of Hydro. “We are very excited to work with a fast moving pioneer like Porsche to help them deliver on their ambitious climate targets. I hope this serves as an inspiration for others to follow suit.”

Building on a letter of intent signed by the two companies in 2023, the new long-term agreement allows for Hydro to deliver its low-carbon aluminum for the production of Porsche’s vehicles in the years to come. The scope of the supply agreement includes both Hydro REDUXA primary low-carbon aluminum and Hydro CIRCAL 75R recycled aluminum containing a minimum of 75% post-consumer scrap. The aluminum is expected to go into the production of Porsche’s next generation of sports cars.

In addition to potential future deliveries of low-carbon and recycled aluminum, the agreement entails technical collaboration on the development of new alloys with higher recycled content. The two companies will also explore how Hydro’s long-term decarbonization projects, including the HalZero emission-free smelting technology currently under development, can be integrated into Porsche’s supply chain.

“Securing access to responsibly sourced materials is a key challenge for the automotive industry, and we are happy to be part of the solution,” said Kallevik. “There is no such thing as a fast lane towards a more sustainable future, but together with Porsche we are accelerating our efforts. Our collaboration is a great recognition of Hydro’s work to decarbonize, minimize environmental impact and contribute to viable societies along the entire aluminium value chain.”

The supply and development of low-carbon aluminum from Hydro will support the automaker’s efforts to achieve a net-carbon neutral value chain of newly produced vehicles in 2030.

“The collaboration with Hydro is an important milestone for Porsche on our path to decarbonization along the entire value chain,” noted Barbara Frenkel, executive board member for procurement at Porsche AG. “In addition, the partnership contributes to responsible sourcing, because Hydro’s aluminum supply chain is transparent.”

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