Mercedes-Benz and Norsk Hydro Join Forces for Greener EVs

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 aluminium, 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 aluminium.

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 hydropower 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

Aluminium is a core material in EVs because it’s lightweight, durable, and helps improve driving range. However, producing it takes a lot of energy and often leads to high carbon emissions. This is mainly because smelting furnaces run on fossil fuels.

Switching to low-carbon aluminium cuts “embedded emissions.” These are the emissions created during material production, before a car even drives.

As global demand for EVs grows, the carbon footprint of materials has become a major focus. Aluminum production alone makes up about 2% of the world’s CO₂ emissions, says the International Energy Agency. Reducing this share can make a big difference in the total climate impact of electric mobility.

Hydro’s approach combines renewable electricity with recycled scrap, cutting both emissions and waste. Recycling aluminum uses just 5% of the energy needed for new production. This makes it a key part of a circular manufacturing system.

How Green Materials Are Reshaping Auto Supply Lines

The Mercedes-Hydro deal fits a larger pattern in the auto industry. Manufacturers are quickly working to decarbonize their supply chains. This effort supports both national and international climate goals.

In Europe, the EU Green Deal and CSRD now require automakers to report emissions from materials and suppliers. These are called Scope 3 emissions, which often make up over 80% of a car’s total carbon footprint.

Major competitors like BMW, Volvo, and Tesla have also announced partnerships for low-carbon metals. Volvo partners with SSAB to create fossil-free steel. Tesla gets aluminum from hydro-powered smelters in Canada.

Teaming up with Hydro helps Mercedes cut its emissions. It also strengthens Europe’s supply chain for sustainable materials. This cuts reliance on imports from high-emission sources.

Driving Through Headwinds: Scaling the Green Metal Revolution

Transitioning to low-carbon aluminum brings benefits but also practical challenges.

Hydro must ensure it can scale up production to meet Mercedes’s needs without raising costs too much. Producing green aluminum costs more than traditional metal. This is mainly because of the investment needed for clean power and recycling facilities.

Mercedes also faces logistical hurdles. It needs a stable and traceable flow of low-carbon aluminum across its global production network. Maintaining product quality while introducing new materials requires careful engineering and testing.

Yet, both companies see strong long-term value. Governments are tightening carbon limits and penalizing high emissions. This creates a chance for sustainable materials to offer a competitive edge. They also align with investor and consumer expectations for more responsible products.

Turning ESG Goals Into Action

This partnership boosts the sustainability credentials of both companies from an ESG perspective.

• Environmental: The collaboration aims to cut emissions from manufacturing. This is one of the toughest areas to decarbonize. It promotes renewable energy use and circularity through recycling.
• Social: It supports cleaner industry jobs and responsible resource management. Norway’s smelting, powered by hydropower, poses fewer risks to communities and the environment compared to coal-based operations in other places.
• Governance: Both companies promise clear emissions reporting, third-party checks, and easy-to-understand sustainability metrics. This is becoming a must for ESG compliance.

Mercedes and Hydro’s efforts show how ESG strategies are shifting from corporate promises to measurable action.

How Low-Carbon Manufacturing Is Steering the Auto Industry’s Future

This partnership may set a standard for the auto industry. As EV adoption increases, the focus on the environment will shift. It will look at total life-cycle emissions, not just tailpipe emissions. This includes everything from materials to recycling.

Experts expect global demand for low-carbon aluminum to increase by over 30% by 2030. This rise will be fueled by the automotive, construction, and packaging sectors. Hydro’s early investment in renewable-based production could give it a strong position in this market.

For Mercedes, the deal supports its broader “Ambition 2039” plan — a roadmap toward climate-neutral mobility. The company aims to cut supply chain emissions by at least 50% by 2030, compared with 2020 levels.

If the low-carbon CLA rollout works, similar materials might spread to all of Mercedes’ EVs, like SUVs and compact models.

The Mercedes-Benz and Norsk Hydro partnership marks a major step toward greener electric vehicle production. Mercedes is using low-carbon aluminum in its manufacturing. This helps cut emissions from both driving and the materials used to make its cars.

For Hydro, it validates years of investment in clean production and renewable energy. For the broader auto sector, it sets a clear signal: sustainability now extends beyond the battery — it starts with every component.

If more companies follow this model, the EV industry could move closer to true net-zero manufacturing, where innovation and environmental responsibility go hand in hand.

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