Mercedes-Benz Signs Low-Carbon Aluminum Deal With Hydro
The supply agreement is part of Mercedes-Benz's effort to reduce emissions across its vehicle value chain.
Updated on Nov. 10, 2026 in Electric Vehicles
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Mercedes-Benz has signed a long-term supply agreement with Hydro to source low-carbon aluminum covering at least 10% of its primary aluminum needs. The deal follows the company's revision of its Ambition 2039 climate target.
Why it matters
Mercedes-Benz signed the agreement as it seeks to cut its carbon footprint, and its climate target was revised after global electric vehicle adoption fell short of expectations. Aluminum is a material used across vehicle production, so the sourcing shift affects the emissions profile of the company's electric vehicles.
Supplied aluminum currently emits about 4 kg of CO2 per kg, compared with a global average of 14.4 kg per kg, and the contract targets 3 kg per kg by 2030. The agreement covers at least 10% of Mercedes-Benz's primary aluminum needs.
The players
Mercedes-Benz
Mercedes-Benz is a German luxury automaker that has set its own climate targets under its Ambition 2039 program.
Hydro
Hydro is a Norwegian aluminum producer that supplies low-carbon metal to automakers and other industrial buyers.
First Movers Coalition
The First Movers Coalition is an international initiative that asks major companies to commit to buying low-emission materials, including aluminum, early.
The details
Under the agreement, Hydro will supply low-carbon aluminum to Mercedes-Benz, and the company is joining the First Movers Coalition, committing to buy at least 10% of its primary aluminum under the coalition's criteria by 2030. Mercedes-Benz also revised its climate roadmap, targeting a 90% cut in production emissions, an 80% cut in vehicle-use emissions if market conditions allow, and a 70% reduction in value chain emissions by 2039.
Timeline
2019: Mercedes-Benz originally set its Ambition 2039 climate target.
2030: Target for supplied aluminum to reach 3 kg CO2 per kg and deadline for the First Movers Coalition aluminum commitment.
2039: Revised production, use, and value chain climate targets take effect.
Roadmap
The First Movers Coalition asks large buyers to commit early to low-emission materials, and Mercedes-Benz's aluminum purchase commitment applies that approach to its own supply chain. The deal comes as the company revises its Ambition 2039 target after global electric vehicle adoption fell short of expectations.
Buyers of Mercedes-Benz vehicles may see lower embedded emissions in future models as low-carbon aluminum enters production. The source does not indicate any change to vehicle prices, availability or charging requirements.
The takeaway
Automakers are increasingly tying material sourcing to emissions targets, so supplier choices now shape the climate footprint of electric vehicles as much as the drivetrain does. Readers tracking the sector can watch whether 2030 aluminum commitments are met.
Further reading
For more on how automakers are cutting emissions, see Electric Vehicles.
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