Hydro and Mercedes-Benz to scale recycled and low-carbon aluminium
Hydro and Mercedes-Benz are expanding their partnership to increase the use of recycled and low-carbon aluminium across Europe. This is supporting efforts to cut emissions while strengthening 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 scrap, a significant increase from today’s minimum of 25 percent. 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 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 decarbonization and competitiveness,” says Eivind Kallevik, President and CEO of Hydro.
Decarbonizing the primary route
Hydro and Mercedes-Benz continue to explore additional opportunities to reduce the carbon footprint of aluminium at industrial scale. At the core of their partnership is a 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 complimentary 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 scrap close to production creates shorter, more efficient and more resilient regional supply 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. Together with Hydro, we are helping to shape that future,” says Yanni von Roy-Jiang, Head of Procurement & Supplier Management at Mercedes-Benz AG.
Responsible sourcing across the value chain
Hydro’s recycled and low-carbon aluminium 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. Aluminium plays a central role in Mercedes-Benz’ materials strategy and Mercedes-Benz is working with its partners on the goal of decarbonizing the aluminium supply chain.
In December 2022, Hydro and Mercedes-Benz signed a low-carbon technology roadmap between 2023 and 2030. In 2024, Hydro and Mercedes-Benz extended their collaboration to cover the entire aluminium value chain, from raw material to finished product.
Today, Mercedes-Benz already sources Hydro aluminium made using electrolysis powered by renewable energy, Hydro REDUXA. 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 decarbonization with competitiveness. Regional value chains, resource efficiency and close cooperation along the supply chain are essential for the transition to low-carbon mobility.
