Aluminium and renewable-energy company Hydro and luxury and light commercial vehicle manufacturer Mercedes-Benz have expanded their partnership to increase the use of recycled and low-carbon aluminium across Europe.

According to Hydro, 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 about 75% post-consumer scrap.

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,” says Hydra president and CEO Eivind Kallevik.

This partnership shows how Hydro can deliver industrial-scale solutions that support both decarbonisation objectives and overall competitiveness, he adds.

Hydro and Mercedes-Benz will continue to explore additional opportunities to reduce the carbon footprint of aluminium at industrial scale.

Hydro currently sources additional volumes of Hydro REDUXA for Mercedes-Benz and the companies have jointly committed to reducing the carbon footprint of this material over time. Hydro REDUXA has a carbon footprint more than 70% lower than the global average, underlining the potential for further emission reductions in automotive applications.

As a complementary solution, with Hydro CIRCAL, the companies keep aluminium in circulation to help meet demand, reducing the need for new raw material and lowering the overall carbon footprint.

These initiatives demonstrate that high levels of post-consumer recycled content can be achieved without compromising stringent requirements for performance, quality and safety. Moreover, 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 localisation to enhance resilience and quality. Together with Hydro, we are helping to shape that future,” says Mercedes-Benz AG procurement and supplier management head Yanni von Roy-Jiang.

Responsible Sourcing

Hydro’s recycled and low-carbon aluminium products are produced using renewable energy and a high share of end-of-life scrap, and are backed by full supply chain transparency on a batch-by-batch basis. Aluminium plays a central role in Mercedes-Benz’s materials strategy and Mercedes-Benz is working with its partners on the goal of decarbonising the aluminium supply chain.

Hydro and Mercedes-Benz signed a letter of intent for a low-carbon technology roadmap between 2023 and 2030 in December 2022. 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 decarbonisation with social responsibility along the supply chain.

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.