Mercedes-Benz Signs Green Iron Pact With HyIron
The memorandum sets out continued technical trials on integrating Namibian-made direct reduced iron into Mercedes-Benz's steel supply chain.
Updated on Nov. 12, 2026 in Electric Vehicles
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Mercedes-Benz signed a memorandum of understanding with HyIron on November 10 to continue technical trials assessing whether HyIron's green iron can be integrated into its steel supply chain. No supply contract exists between the two companies.
Why it matters
Green iron, made by reducing iron ore with hydrogen produced from renewable power rather than coal or natural gas, is one of the few routes to near-zero-emissions steel. Announced capacity far outstrips verified production, so trials like this one help show which projects can deliver.
HyIron's Oshivela plant has an annual capacity of 15,000 tonnes of direct reduced iron, with a stated goal of 2 million tonnes a year by 2030. Of 115 million tonnes of announced near-zero-emissions steel capacity, fewer than 10% fully meets the criteria, and recorded purchase commitments total about 5 million tonnes.
The players
Mercedes-Benz
A German luxury automaker whose steel supply chain decisions drive demand for lower-emission materials across its vehicle production.
HyIron
A German-Namibian company operating the Oshivela plant, which produces direct reduced iron using green hydrogen.
Toyota Tsusho
The Japanese trading and industrial company that signed a memorandum with the Namibian government in August 2025 to help build a green iron and steel supply chain.
Benteler
A German industrial engineering and automotive components group that holds a commercial agreement with HyIron for potential purchases of up to 200,000 tonnes of direct reduced iron.
The details
The memorandum provides for continued technical trials to assess how HyIron's iron would fit into Mercedes-Benz's steel supply chain. HyIron, a German-Namibian company, has produced direct reduced iron at Oshivela since April 2025, and the plant is described as the only operational industrial green iron project identified in Namibia.
Timeline
November 2024: HyIron concluded a commercial agreement with Benteler providing for potential purchases of up to 200,000 tonnes of direct reduced iron.
April 2025: HyIron's Oshivela plant began producing direct reduced iron.
August 2025: Toyota Tsusho signed a memorandum of understanding with the Namibian government on developing a green iron and steel supply chain.
November 10, 2026: Mercedes-Benz signed its memorandum of understanding with HyIron.
2030: HyIron targets annual output of 2 million tonnes at the Oshivela site.
Roadmap
Hydrogen-based direct reduction is the process HyIron runs at Oshivela, and the Mercedes-Benz trial tests whether that route can supply automotive steel at scale. Worldwide announcements of near-zero-emissions steel capacity far exceed the share that has met the criteria so far, making proven plants like Oshivela a benchmark for the sector.
For car buyers, the trials point toward cleaner steel in future vehicle bodies, but no supply contract exists yet and no change to current models or prices is announced. Buyers should not expect any immediate difference in vehicle cost or availability from this memorandum.
The takeaway
A signed memorandum is a step toward a supply deal, not a deal itself, so the real test is whether the technical trials lead to a binding purchase agreement. Watch for that contract as the signal that green iron is moving from pilot to production.
Further reading
For more on how automakers are reshaping their supply chains, explore Electric Vehicles coverage.
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