Mercedes-Benz has partnered with Norwegian aluminium producer Norsk Hydro to reduce emissions in the manufacturing of its electric vehicles (EVs). The collaboration centers on using Hydro’s low-carbon aluminum, which is produced with renewable energy and recycled materials.
The deal is part of Mercedes’s plan to make production greener. It aims to reduce the carbon footprint of future EVs. This includes the new electric CLA model, which will be the first vehicle to feature Hydro’s aluminum.
This partnership shows how carmakers are changing materials and energy use. They aim to meet rising climate goals and consumer demand for cleaner cars.
The Partnership: How Green Aluminium Is Recasting Mercedes’ EV Blueprint
Norsk Hydro will supply Mercedes with aluminum that emits far less carbon than standard production. Hydro’s smelting sites in Norway run mostly on hydropower, which helps avoid fossil-fuel emissions.
Hydro says its low-carbon aluminum generates just 3 kilograms of CO₂ for every kilogram of metal. In contrast, the global average is 16.7 kilograms. That makes it one of the lowest-carbon aluminum products available today.
For Mercedes, this has a direct effect. The company thinks using Hydro’s aluminum in the new CLA will reduce CO₂ emissions by about 40% compared to the old petrol version. This includes emissions from raw materials, manufacturing, and assembly.
This step supports Mercedes’s long-term goal to make all its passenger cars net carbon neutral by 2039. The target covers the full life cycle — from raw materials and production to driving and recycling.
Aluminum production makes up around 2% of global CO₂ emissions, says the International Energy Agency (IEA). Switching to cleaner aluminum can reduce CO₂ emissions by millions of tonnes annually in global supply chains.
Why Aluminium Defines the EV Climate Race
Aluminum is central to the EV transition because it is light, durable, and improves range by reducing vehicle weight. However, it is also energy-intensive to produce, especially when powered by coal or gas.
Embedded emissions from materials like aluminum — those released before the vehicle is driven — are now a big concern for automakers.
To address this, companies are switching to low-carbon aluminium, which combines renewable electricity and recycled scrap. Recycling is key because it uses only 5% of the energy required for new aluminum production.
In Europe, recycling rates for post-consumer aluminum are about 36%. However, they are expected to double by 2030, based on industry forecasts. If achieved, this could reduce 39 million tonnes of CO₂ emissions per year by 2050 across the region.
Globally, aluminum recycling — including beverage cans — could save 60 million tonnes of CO₂ per year by 2030.
These savings matter. The IEA says that a 10% rise in aluminum recycling around the world could reduce emissions. This is like taking 7 million cars off the road each year.
As global demand for EVs grows, the carbon footprint of materials has become a major focus. Reducing aluminium’s emissions share can make a big difference in the total climate impact of electric mobility.
How Green Materials Are Reshaping Auto Supply Lines
The Mercedes-Hydro deal is part of a wider shift across the automotive sector. Companies feel pressure to decarbonize their supply chains. This helps them meet national and international goals.
In the EU, new rules from the Green Deal and CSRD require automakers to track and report Scope 3 emissions. These are the indirect emissions from materials, suppliers, and logistics. These often make up more than 80% of a car’s total carbon footprint.
Several of Mercedes’s competitors have already joined this transition:
- Volvo is partnering with SSAB to develop fossil-free steel.
- Tesla sources aluminum from hydro-powered smelters in Canada.
- BMW uses recycled aluminum in its i-series vehicles to lower emissions from manufacturing.
Mercedes teams up with Hydro to boost its European supply chain for low-carbon materials. This move also cuts down on high-emission imports from Asia.
The global low-carbon aluminum market hit 19 million tonnes in 2024. Analysts predict it will grow by 3.7% each year and will reach nearly 28 million tonnes by 2033. Demand for cleaner metals in the automotive, construction, and packaging sectors could rise by more than 30% by 2030.
Moreover, market data shows that low-carbon aluminum carries a price premium ranging from $20 to $150 per tonne, depending on supply and demand. Mercedes executives say these extra costs are acceptable, as they align sustainability with product quality and customer expectations.
Mercedes also faces challenges in logistics and engineering. It must ensure a steady, traceable flow of low-carbon aluminum to all production sites. Engineers also have to test how these new materials affect vehicle structure and performance.
Still, both companies see the partnership as a long-term investment. Governments are tightening emission limits and adding carbon border taxes. So, using cleaner materials can be both good for the environment and beneficial for the economy.
Hydro already uses renewable power for 70% of its smelting. It plans to reach net-zero emissions by 2050, and it aims to cut its operational footprint by 30% by 2030.
Turning ESG Goals Into Action
This collaboration strengthens both companies’ ESG performance — environmental, social, and governance.
- Environmental: The deal tackles manufacturing emissions — one of the hardest areas to decarbonize. It promotes renewable energy, recycling, and a circular materials model.
- Social: It supports clean industry jobs and responsible sourcing. Norway’s hydropower-based smelting has lower community and ecological risks compared to coal-based plants in Asia.
- Governance: Mercedes and Hydro have committed to transparent emissions reporting and third-party audits. These steps support compliance with international ESG standards and investor expectations.
These actions make sustainability goals real. They change policy talk into actual results.
How Low-Carbon Manufacturing Is Steering the Auto Industry’s Future
The Mercedes-Hydro partnership could become a model for others. As EV adoption grows, automakers are looking beyond tailpipe emissions to the entire vehicle life cycle, from raw materials to end-of-life recycling.
Experts see global demand for low-carbon aluminum increasing by over 30% by 2030. This growth is fueled by EV manufacturing and the expansion of renewable energy.
For Mercedes, the deal supports its Ambition 2039 plan — to make its entire value chain carbon-neutral. The company aims to cut supply chain emissions by 50% by 2030, compared with 2020 levels.
Hydro’s low-carbon aluminum could play a big part in achieving this target. If the low-carbon CLA rollout succeeds, similar materials will likely be used in Mercedes’s future EVs, including SUVs and compact cars.
The impact extends beyond one company. If more car makers join in, the auto industry could reduce CO₂ emissions by millions of tonnes each year. This would help meet global climate goals from the Paris Agreement.
For Hydro, this confirms the value of its years of investment in clean energy and recycling innovation. For the global automotive sector, it sets a new benchmark: sustainability starts with every component.
