Mercedes-Benz and Hydro partner to develop a sustainable aluminium supply chain

The German OEM has signed a letter of intent (LoI) with Hydro to develop a low-carbon technology roadmap between 2023 to 2030. Hydro already supplies Mercedes with CO2 reduced aluminium for its foundry in Stuttgart Mettingen, however, the companies say this strategic partnership raises the cooperation to a new level to optimise decarbonisation processes for aluminium used in vehicle manufacturing.

The first material made of CO2 reduced aluminium from Norway with a CO2 footprint reduction of almost 70% is expected for next year. The partners say they are also aiming to reduce the use of primary resources through increased use of secondary materials from post-consumer scrap.

As part of Mercedes-Benz’s “Ambition2039”, the focus is on the reduction of CO2 emissions as well as the responsible use of resources along the entire supply chain. The OEM says it is retooling its supply chain to focus on the prevention and reduction of CO2 emissions rather than through offsetting.

Mercedes says increasing the use of recycled material plays a major role in realising further CO2 reductions. Producing aluminium by using secondary material only requires five percent of the energy compared to aluminium production based on primary resources. So, as part of the collaboration Mercedes-Benz and Hydro are exploring solutions how to implement a closed-loop-recycling.

The OEM notes it is also committed to the responsible sourcing of aluminium, relying on the application of recognised standards and robust certificates.

“Aluminium is becoming increasingly important as a lightweight 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.” Said Markus Schäfer, Member of the Board of Management of Mercedes-Benz Group AG. Chief Technology Officer, Development & Procurement.