Mercedes-Benz is expanding its partnership with Norwegian aluminium and renewable energy company Hydro to decarbonise aluminium in Europe for its next generation of large electric vehicles (EVs).

Under the expanded agreement, Mercedes-Benz will use Hydro Circal in series production for its next generation of large EVs.

Mercedes-Benz said it is the “first” automotive company in Europe to do so.

Hydro Circal is recycled aluminium made with at least 75% post-consumer recyclate, compared with around 25% in the material currently supplied.

The aluminium is produced through recycling processes that recover material from end-of-life vehicles, buildings and infrastructure for use in new automotive applications.

Mercedes-Benz procurement & supplier management head Yanni von Roy-Jiang said: “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.”

The companies said they would continue to examine additional ways to cut the carbon footprint of aluminium at industrial scale.

The partnership also covers sourcing additional volumes of Hydro Reduxa aluminium for Mercedes-Benz, alongside a joint commitment to lowering the carbon footprint of that material over time.

Hydro Reduxa is produced using electrolysis powered by renewable energy and has a carbon footprint more than 70% lower than the global average, according to the companies.

Mercedes-Benz said aluminium is central to its materials strategy and that it is working with partners to decarbonise its aluminium supply chain.

In December 2022, Mercedes-Benz and Hydro signed a letter of intent for a low-carbon technology roadmap covering 2023 to 2030.

In 2024, they broadened their collaboration to include the full aluminium value chain from raw material to finished product.

Hydro president and CEO Eivind Kallevik added: “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.”