Norwegian aluminium producer Hydro has signed a long-term supply agreement with Mercedes-Benz to provide low-carbon and recycled aluminium for the automaker’s production operations. The agreement, announced on 10 November 2026, will remain in force beyond 2030.
The deal covers at least 10% of Mercedes-Benz’s primary aluminium demand, with Hydro progressively reducing the carbon footprint of the supplied metal to 3.5 kg CO₂e per kg of aluminium by 2028.
The agreement also includes Hydro Circal recycled aluminium, which contains at least 75% post-consumer aluminium scrap. Its integration into Mercedes-Benz production is planned to begin in 2027, increasing the use of secondary raw materials in the automotive supply chain.
According to Hydro CEO Eivind Kallevik, long-term supply commitments provide an important incentive for investment in industrial decarbonisation. Mercedes-Benz also highlighted the role of lower-carbon materials and circularity in strengthening supply-chain resilience. 
The partnership reflects the automotive industry’s growing demand for aluminium with lower embodied carbon and higher recycled content. As vehicle manufacturers seek to reduce emissions across their value chains, long-term procurement agreements are becoming an important mechanism for supporting investment in cleaner aluminium production and recycling.
Source: Hydro with additional information added by Glass Balkan
