Hydro and Nemak sign LOI to decarbonize automotive industry

Hydro has signed a letter of intent (LOI) with Nemak to develop low-carbon aluminium casting products for the automotive industry. The ambition is to accelerate decarbonization efforts and support car manufacturers in reaching their sustainability goals.

The decarbonization will be done by using more post-consumer scrap and changing the energy mix to cleaner energy sources like natural gas and electrical boilers at Hydro’s Alunorte alumina refinery in Brazil. The long-term ambition is to develop foundry alloy aluminium solutions qualified for automotive applications with a CO2 footprint below 3.0 kg CO2 per kilo aluminium.

“Expectations from society and customers towards business and industry to drive change are rising rapidly. Our strengthened collaboration with Nemak means we will develop more circular products and work towards pushing carbon footprint reduction to the limit. This can make a difference for automotive companies looking to decarbonize their supply chains and meet ambitious sustainability goals,” says Hanne Simensen, Executive Vice President for Hydro Aluminium Metal.

Hydro already supplies Nemak with Hydro REDUXA primary foundry alloy (PFA), a premium product with an estimated carbon footprint below 4.0 kg CO2 per kilo aluminium. This is 25 percent of the global average and the LOI aims to further reduce the CO2 footprint by 25 percent. 

Polish recycling company Alumetal, who has been fully owned by Hydro since 2023, is also supplying foundry alloy products to Nemak.