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Under the agreement, Hydro will progressively reduce the carbon footprint of primary aluminium supplied to Mercedes-Benz to 3.5 kg CO2e per kg by 2028. The agreement also covers Hydro CIRCAL recycled aluminium, containing at least 75 percent post-consumer aluminium scrap, with use planned from 2027.
“Long-term demand is the single most important investment trigger for decarbonizing how materials are made. When partners like Mercedes-Benz commit to reliable, long-term offtake of low-carbon and recycled aluminium, they strengthen the business case for investing in further emissions reductions, making meaningful progress possible,” says Eivind Kallevik, President and CEO of Hydro.
The agreement combines Hydro’s expertise in low-carbon aluminium with Mercedes-Benz automotive engineering, giving Mercedes-Benz long-term access to recycled and low-carbon aluminium, while providing Hydro with a trusted partner to further develop and scale low-carbon solutions.
Lower-carbon aluminium for future vehicles
As vehicles become increasingly electrified, reducing emissions from the materials used in their production becomes increasingly important. Aluminium’s carbon footprint depends significantly on how the metal is produced, including the energy sources and technology used in production.
Hydro REDUXA is produced using renewable energy and technology to reduce emissions across the production process. Reaching a carbon footprint of 3.5 kg CO2e/kg by 2028 marks the next milestone in a decarbonization roadmap the companies established together in 2022.
“Higher levels of circularity and a lower-carbon footprint can play a role in enhancing the resilience of our automotive supply chains. Together with Hydro, we are making low-carbon aluminium a key pillar in our mass production process,” says Yanni von Roy-Jiang, Head of Procurement and Supplier Management at Mercedes-Benz AG.
The long-term agreement also includes Hydro CIRCAL recycled aluminium, which contains at least 75 percent post-consumer aluminium and has a carbon footprint of no more than 1.9 kg CO2e per kg. In the summer of 2026, Mercedes-Benz became the first car manufacturer in Europe to announce the integration of Hydro CIRCAL into series production for the next generation of large electric vehicles from 2027.
The agreement runs beyond 2030 and covers at least 10 percent of Mercedes-Benz’s primary aluminium demand, providing long-term predictability for both companies.
Further reductions toward 2030
By combining low-carbon primary aluminium with higher levels of post-consumer scrap, Hydro and Mercedes-Benz aim to reduce emissions and the use of primary resources while meeting automotive requirements for quality, safety and performance.
Hydro and Mercedes-Benz will continue working toward a carbon footprint of 3.0 kg CO2e/kg for primary aluminium by 2030, a target first set out when the companies signed a letter of intent in 2022. Further reductions will require continued technology development and investment.
Mercedes-Benz is also joining the First Movers Coalition, a global initiative that brings together companies using their purchasing power to build demand for emerging low-carbon technologies in hard to abate industries.
Building on years of collaboration
140 years after Carl Benz invented the automobile in 1886, the same year as the production process for aluminum was patented, Mercedes-Benz and Hydro bring more than 260 years of combined industrial experience to the challenge of reducing emissions from automotive materials.
The companies have worked together for several years to increase the use of recycled and lower-carbon aluminium in automotive applications. The new agreement builds on this collaboration and provides a foundation for the next steps in their work to reduce emissions from aluminium.
The collaboration also extends beyond aluminium supply. Through the Corridor program in Brazil, Hydro and Mercedes-Benz combine work on decarbonization with social responsibility across the aluminium value chain.
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: November 10, 2026