Mercedes-Benz and Hydro deepen partnership for low-carbon aluminium

• Mercedes-Benz and Hydro are intensifying their partnership to bring more low-carbon material into series production
• Mercedes-Benz becomes the first automobile manufacturer in Europe to use Hydro CIRCAL recycled aluminium with 75% post-consumer scrap
• The partnership strengthens regional value chains, reinforcing supply-chain resilience while combining decarbonisation with competitiveness

Mercedes-Benz and Hydro are expanding their partnership to decarbonise aluminium across Europe, supporting efforts to cut emissions while supporting 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, which represents a significant increase from around 25 percent in the material currently supplied. 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 next generation of automotive supply chains will be defined by higher levels of circularity, a lower carbon footprint, and a deeper level of localisation to enhance resilience and quality. Together with Hydro, we are helping to shape that future.”
Yanni von Roy-Jiang, Head of Procurement & Supplier Management at Mercedes-Benz AG

Decarbonising the primary route

Mercedes-Benz and Hydro continue to explore additional opportunities to reduce the carbon footprint of aluminium at industrial scale. At the core of the partnership is their 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 complementary 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 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. 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 decarbonisation and competitiveness.”
Eivind Kallevik, President and CEO of Hydro

Responsible sourcing across the value chain

Aluminium plays a central role in Mercedes-Benz’ materials strategy and Mercedes-Benz is working with its partners on the goal to decarbonise the aluminium supply chain. Hydro’s recycled and low-carbon 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. 

In December 2022, the vehicle manufacturer brand and the Norwegian aluminium manufacturer Hydro signed a letter of intent (LoI) for a low-carbon technology roadmap between 2023 and 2030. In 2024, Mercedes-Benz and Hydro extended their collaboration to cover the entire aluminium value chain from raw material to finished product. Together, the companies launched the joint initiative Corridor Program in Brazil, strengthening social responsibility and human rights due diligence along the supply chain. Today, Mercedes-Benz already sources Hydro aluminium made using electrolysis powered by renewable energy (Hydro REDUXA) for selected aluminium components used in series production. 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 decarbonisation with competitiveness. Regional value chains, resource efficiency and close cooperation along the supply chain are essential for the transition to low-carbon mobility.

Mercedes-Benz anniversary year “140 Years of Innovation”

Since Carl Benz filed the patent for the first automobile 140 years ago and Gottlieb Daimler built his motorised carriage shortly afterwards, Mercedes‑Benz has dedicated itself to constant innovation and to creating the world’s most desirable cars for customers. This ambition has driven every innovation – from the world’s first automobile in 1886 to the biggest product launch programme in the company’s history that is currently underway. With its passion for performance and pioneering power, excellence and an unwavering commitment to customer service, the brand has consistently shaped the future of mobility. The result goes well beyond engineering achievement – it creates the unmistakable feeling that runs through everything Mercedes‑Benz does: Welcome home. 

Mercedes‑Benz is celebrating 140 years of innovation by driving three new S‑Class saloons on a trans-continental journey to 140 locations worldwide. Each place highlights the brand’s technology, heritage, pioneering spirit and worldwide presence. Along the way, customers, fans and colleagues will get to join in the celebrations - on an epic adventure that will run until October. Follow the “140 Years. 140 Places” drive across six continents on our “140 Years of Innovation | Mercedes‑Benz Media” special and via the Mercedes‑Benz Community.