Mercedes-Benz to use low-carbon aluminium in EV production

Mercedes-Benz is working with Norsk Hydro to integrate low-carbon aluminium into its electric vehicle production. The company says this represents a significant step towards more sustainable materials in the automotive industry.

As reported by ESGNews, the aim of the collaboration is to reduce CO₂ emissions from the new CLA electric vehicle by around 40% compared with its equivalent predecessor. Mercedes-Benz says it can achieve this substantial reduction by using aluminium with a significantly lower carbon content.

The German automaker has already agreed on supplies of low-carbon aluminium with Norwegian company Norsk Hydro. Norsk Hydro's aluminium is produced using renewable hydropower and recycled aluminium scrap. As a result, its total carbon footprint is just 3 kg CO₂ per kg of aluminium—80% below the industry global average of 16.7 kg CO₂/kg.

The aluminium comes from Hydro's plant in Årdal, Norway, which uses hydropower and adds around 25% recycled aluminium to each batch. The collaboration underscores how automakers are increasingly motivated to pay higher prices for greener raw materials to meet mounting pressure from regulators, investors and customers. Gunnar Guthenke, Mercedes-Benz's vice president of procurement and supplier quality, acknowledged that using metals with particularly low carbon emissions entails additional costs, but stressed that sustainability and desirable product quality “go hand in hand”.

A net-zero value chain by 2039

The collaboration is in line with Mercedes-Benz's internal ambition to achieve a net-zero value chain by 2039, while also helping prepare the company for regulations under mechanisms such as the EU Carbon Border Adjustment Mechanism (CBAM) and the Corporate Sustainability Reporting Directive (CSRD). The partnership could also spur demand for low-carbon materials in the EV manufacturing sector, as emissions from the production life cycle of batteries and metals remain a key area of criticism.

Norsk Hydro is responding to the sustainability trend by expanding its range of “low-carbon” aluminium, including its Hydro CIRCAL product line, which contains at least 75% recycled aluminium scrap and is intended for use in the automotive and construction industries. Eivind Kallevik, Hydro's chief executive, noted that despite weak aluminium markets, demand for low-carbon products remains steady and strategic partnerships help spread the costs of decarbonisation between suppliers and manufacturers.

As automakers seek to reduce Scope 3 emissions (those from supply chains and distribution), collaborations such as the one between Mercedes-Benz and Norsk Hydro could be just the first sign of a broader trend. Integrating cleaner materials early in the design of new models helps future-proof operations amid evolving carbon pricing regimes and investor scrutiny.