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 letter of intent (LoI) for 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.
Together the companies launched the joint initiative Corridor Program in Brazil, combining decarbonization with social responsibility along the supply chain. 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.
About Hydro
Hydro is a leading aluminium and renewable energy company committed to a sustainable future. Hydro’s purpose is to create more viable societies by developing natural resources into products and solutions in innovative and efficient ways.
Since 1905, Hydro has turned natural resources into valuable products for people and businesses, creating a safe and secure workplace for its 32,000 employees in more than 40 countries. www.hydro.com
About Mercedes-Benz AG
Mercedes‑Benz AG is part of the Mercedes‑Benz Group AG with a total of around 164,000 employees worldwide and is responsible for the global business of Mercedes‑Benz Cars and Mercedes‑Benz Vans. Ola Källenius is Chairman of the Board of Management of Mercedes‑Benz AG.
The company focuses on the development, production and sales of passenger cars, vans and vehicle related services. Furthermore, the company aspires to be the leader in the fields of electric mobility and vehicle software. The brand portfolio of Mercedes‑Benz Cars includes the Mercedes‑Benz brand, as well as Mercedes‑AMG, Mercedes‑Maybach, and the G‑Class product brand. Mercedes‑Benz AG is one of the world’s largest manufacturers of high-end passenger cars. In 2025 it sold more than 2.1 million passenger cars and vans. In its two business segments, Mercedes‑Benz AG is continually expanding its worldwide production network with around 30 production sites on four continents.
As sustainability is the guiding principle of the Mercedes‑Benz strategy and for the company itself, this means creating lasting value for all stakeholders: for customers, employees, investors, business partners and society as a whole. The basis for this is the sustainable business strategy of the Mercedes‑Benz Group. The company thus takes responsibility for the economic, ecological and social effects of its business activities and looks at the entire value chain.
Published: July 27, 2026
