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Hydro partners with Mercedes-Benz on road to CO2 neutrality

Hydro will supply Mercedes-Benz with low-carbon aluminium to reduce the carbon footprint of their vehicle fleet, including EQ models. The parties have agreed to a common low-carbon technology roadmap in the period 2023-2030.

Mercedes-Benz at the mountains with windmill i background
Photo: Mercedes-Benz

Hydro and Mercedes-Benz will from 2023 to 2030 collaborate on a joint technology roadmap aiming to develop aluminium solutions approved for automotive applications with a CO2 footprint below 3.0 kgCO2/kgAl. The ambition is to approach near-zero aluminium by end of the same time period.

Hydro will deliver its first volumes of aluminium with a footprint below 3.0 kg CO2 / kg aluminium,  Hydro REDUXA 3.0, to Mercedes-Benz in 2023. The product will be introduced to a range of Mercedes-Benz models including their EQ models.

“Mercedes-Benz is a forward leaning company and a perfect partner for Hydro. The ambition of making their entire fleet of new passenger cars CO2 neutral by 2039 matches Hydro’s ambition to deliver industrial scale zero-carbon aluminium by 2030. Partnerships and collaboration in the value chains can accelerate technology developments needed to reduce emissions, and we are excited to have Mercedes-Benz joining us on our path to zero-carbon aluminium,” says Hilde Merete Aasheim, President and CEO in Hydro.

Hydro CEO Hilde Merete Aasheim with Mercedes' Markus Schäfer, member of the Board of Management and Chief Technology Officer, Development & Procurement.
Hydro CEO Hilde Merete Aasheim with Mercedes' Markus Schäfer, member of the Board of Management and Chief Technology Officer, Development & Procurement.

Carmakers rely on aluminium to reduce weight and carbon emissions without compromising safety. The recyclability of aluminium means that single use materials can be avoided. Hydro has been supplying Mercedes-Benz with aluminium components for many years. With this partnership, Mercedes-Benz and Hydro will collaborate and further research how low-carbon and recycled aluminium solutions can be used in vehicles. The objective is to utilize the full potential of aluminium as a low-carbon solution in modern vehicles.

“Aluminium is becoming increasingly important as a light weight material in electric vehicles. We are intensively working with our partners on finding levers to lower CO2 emissions in the aluminium supply chain. Therefore, I am very happy that we now join forces with Hydro as a long standing expert in producing renewable energies to tackle one of the biggest challenges in the automotive industry. This is an important signal to accelerate change in the aluminium industry and increase the availability of low-carbon aluminium,” says Markus Schäfer, member of the Board of Management of Mercedes-Benz Group AG. Chief Technology Officer, Development & Procurement.

Shaping the market for greener aluminium

Hydro is committed to deliver a 30 percent reduction in its CO2 emissions by 2030. For primary aluminium production, emission reductions will come from reducing emissions in Hydro’s alumina production facilities in Alunorte, Brazil, and through further optimization of its electrolysis and casthouse operations. Hydro is developing carbon capture solutions for its existing aluminium production facilities, while in parallel, developing a new, zero-carbon primary aluminium technology. Hydro aims to have industrial scale pilots for such technologies by 2030.

“In order to successfully deliver on our decarbonization strategies, we need to team up with frontrunners all along the value chain.​ Working in strategic partnerships with customers and other players in the value chain will be an important way for Hydro to achieve our ambitions of shaping the market for low and near-zero carbon aluminium,” says Aasheim.

About Mercedes-Benz

The Mercedes-Benz Group AG is one of the world's most successful automotive companies and one of the leading global suppliers of premium and luxury cars and vans. Mercedes-Benz sells its vehicles and services in nearly every country of the world and has production facilities in Europe, North and Latin America, Asia and Africa.

About aluminium in automotive

Advantages of using aluminium in automotive

  • Strength/weight ratio
  • Energy absorption for safety parts
  • Surface quality for trims
  • Conductivity for high-voltage battery cables
  • Recyclability

Examples of car parts that can be made with aluminium extrusions

  • High voltage cables
  • Side sill
  • Crush can
  • Front crash members
  • Rear bumper
  • Multiport extrusion
  • Subframe
  • Battery box
  • Exterior details like roof rails and trims


Line Haugetraa

Line Haugetraa

Head of Investor Relations

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