Mercedes-Benz and Norwegian producer Hydro are deepening their alliance to cut the carbon footprint of aluminium across Europe. As a first step, Mercedes-Benz says it will become the first carmaker in Europe to use Hydro CIRCAL — a recycled alloy with at least 75 percent post-consumer content — in series production. The material is destined for the next generation of the brand’s large electric vehicles.

Mercedes-Benz and aluminium maker Hydro have widened a partnership aimed at lowering emissions from one of the car industry’s most important materials. According to the companies, the expanded cooperation is meant to decarbonise aluminium supply in Europe while building more resilient, regional supply chains.

More recycled content in series production

The headline move is Hydro CIRCAL, a recycled aluminium that Mercedes-Benz says it will be the first European carmaker to put into series production. The company states the material contains at least 75 percent post-consumer recycled content — a sharp increase over the roughly 25 percent in the material currently supplied. It is bound for the next generation of the brand’s large electric vehicles.

The recycled metal is recovered, according to the manufacturer, from end-of-life vehicles, buildings and infrastructure, then returned to automotive use through modern recycling processes. The companies say high shares of post-consumer material can be reached without compromising the strict requirements for performance, quality and safety.

“The automotive industry needs materials that can reduce emissions without compromising on quality, safety or performance,” said Eivind Kallevik, President and CEO of Hydro. He added that combining recycled Hydro CIRCAL with lower-carbon primary Hydro REDUXA can “accelerate the shift towards lower-carbon vehicles while building more resilient value chains.”

Cutting the footprint of primary aluminium

Alongside recycling, the partnership focuses on lower-carbon primary aluminium. Mercedes-Benz already sources Hydro REDUXA for selected components in series production. The metal is produced by electrolysis using renewable energy, and Hydro says its carbon footprint is more than 70 percent below the global average. The two companies plan to take additional volumes and to keep reducing that footprint step by step.

Mercedes-Benz frames the two materials as complementary: recycling keeps aluminium in the loop and eases demand for new raw material, while lower-carbon primary metal covers what recycling cannot. Collecting, reprocessing and reusing aluminium close to production, the company says, creates shorter and more resilient regional supply chains.

A partnership several years in the making

The collaboration is not new. In December 2022 the two signed a letter of intent for a low-carbon technology roadmap running from 2023 to 2030. In 2024 they broadened the work across the entire aluminium value chain, from raw material to finished part, and launched a “Corridor” programme in Brazil intended to strengthen social responsibility and human-rights due diligence along the supply chain. The companies say the Hydro supply chain is traceable down to individual batches.

What it means

Aluminium is central to Mercedes-Benz’s materials strategy, and cutting its embedded emissions is a meaningful lever as the industry moves to electric drive — where a car’s build accounts for a larger share of its lifetime footprint. The manufacturers position the deal as proof that decarbonisation and competitiveness can go together, with regional value chains and resource efficiency as key ingredients.

“We show that resilient supply chains and lower emissions go hand in hand,” said Yanni von Roy-Jiang, Head of Procurement and Supplier Management at Mercedes-Benz AG, “and create long-term added value for our customers, our company and society.”

Mercedes-Benz has not named the specific models that will use the higher-recycled-content aluminium or given a start date beyond the next generation of its large electric vehicles.