Hydro signed a long-term agreement with power cable solutions provider NKT, under which Hydro will supply NKT with low-carbon aluminum for the production of wire rod. The aim is to meet the growing market demand for medium and high voltage power cable solutions in Europe, as the region upgrades its outdated grid infrastructure. This is a key part of the European Commission’s plan to develop a resilient, interconnected, and secure energy system fit for the future.
“It is with a sense of urgency that Europe is now mobilizing to reduce the dependency on fossil fuel imports, introduce more homegrown, renewable power, and ensure security of supply of critical raw materials,” said Eivind Kallevik, president and CEO of Hydro. “Together with NKT, we are building a supply chain to provide responsibly sourced aluminum for the infrastructure makeover that Europe needs to bring down energy prices, accelerate the energy transition and boost European competitiveness.”
Developing the Energy Grid with a Stable Supply Chain
Aluminum has been defined by the EU as a critical material — with Norway being a key provider, covering 40% of primary aluminum production in Europe. Due to its high conductivity and flexibility, combined with its light weight and lower cost compared to other metals, aluminum is often used in power cables, making it optimal solution for developing the renewable energy grid.
“Given the current geopolitical landscape, securing reliable, local supply chains is increasingly important,” notes Claes Westerlind, president and CEO of NKT. “This long-term supply agreement with Hydro not only guarantees a stable supply of low-carbon aluminum, but it also reinforces our position as a sustainability leader in the power cable industry. It supports our strategy to continuously improve the carbon intensity of our cables, thereby supporting both our own short and long-term targets and our customers’ decarbonization ambitions.”
NKT connects a greener world with high-quality power cable technology. The company designs, manufactures, and installs low, medium, and high voltage power cable solutions enabling sustainable energy transmission.
Hydro and NKT previously entered a strategic partnership in March 2024 to develop low-carbon solutions for Europe’s energy sector. The company’s latest contract with NKT follows announcement in April 2025 to invest NOK 1.65 billion (US$153.5 million) in a new wire rod casthouse in Karmøy, Norway. The expansion in Norway will allow Hydro to secure a stable supply of low-carbon aluminum wire rod to NKT from 2026 through 2033, with a total committed volume of around 274,000 tonnes with an option for additional volumes.
The aluminum supplied will be comprised of Hydro’s REDUXA 4.0 primary aluminum, which is produced in Norway with renewable energy. The metal has a documented carbon footprint of 4 kg CO2e per kilo aluminum or less, about a quarter of the world industry average. Hydro aims to reduce the footprint further, with NKT having first rights to primary aluminum wire rod with a carbon footprint well below 4 kg CO2e per kilo aluminum.
Within the framework of a joint decarbonization roadmap, the two companies are committed in their research and development efforts to explore aluminum wire rod applications with the lowest possible carbon footprint.
“Europe’s energy transition is about one thing, more renewable power production, and the power produced must be transported over long distances,” said Kallevik. “We are excited to work together with NKT to support the development of Europe’s future energy grid with low-carbon materials, ensuring that Europe’s renewable energy is transported to market by means of low-carbon aluminium transmission cables.”