• Mercedes’ new electric CLA is produced with 40% fewer emissions than its predecessor through the use of low-carbon aluminium.
• Norsk Hydro’s aluminium emits only 3 kg of CO₂ per kg—80% lower than the global average—by using renewable power and recycled scrap.
• The collaboration reflects growing industry demand for premium low-carbon materials amid rising supply-chain decarbonisation pressures.
Stuttgart–Oslo collaboration aims to decarbonize luxury manufacturing
Mercedes-Benz has introduced low-carbon aluminium into its latest electric CLA model as part of a broader strategy to reduce the environmental footprint of its electric-vehicle production. The material, developed with Norwegian metals group Norsk Hydro, relies on renewable energy and recycled scrap to deliver one of the lowest carbon intensities in the industry.
Executives from both companies said the partnership highlights how automakers are beginning to pay a premium for greener raw materials to align with tightening global emissions rules and rising consumer scrutiny.
“Sustainability and desirable products simply go hand in hand,” said Gunnar Guthenke, Mercedes-Benz’s vice president of procurement and supplier quality. “There are, of course, extra costs from using especially low-carbon steel or aluminium, but this is the direction we are moving.”
40% emissions reduction in next-generation CLA
Mercedes said the new CLA is produced with around 40% fewer CO₂ emissions compared to its non-electric predecessor. The aluminium supplied by Norsk Hydro plays a key role in achieving that reduction.
Hydro’s plant in Årdal, located on Norway’s west coast, produces the metal using hydropower and includes roughly 25% recycled aluminium scrap in each batch. As a result, the production of one kilogram of Hydro’s aluminium generates just 3 kilograms of CO₂—well below the global average of 16.7 kilograms, according to data from both firms.
While the companies did not disclose the exact cost difference, Guthenke said the focus is on long-term sustainability gains and risk reduction rather than short-term price parity.
Industry shift toward low-carbon materials
The shift to low-carbon metals reflects a broader trend in industrial supply chains as automakers, technology companies, and construction firms face new regulatory and investor scrutiny over Scope 3 emissions. For Mercedes, which aims to achieve a net-zero value chain by 2039, sourcing cleaner aluminium and steel is essential to meeting those targets.
Norsk Hydro’s chief executive Eivind Kallevik said demand for low-carbon products has remained resilient even amid weaker aluminium markets and slower global growth. “We are seeing a growing demand for low-carbon products,” he told Reuters, adding that partnership models allow the cost of decarbonisation to be shared rather than borne solely by manufacturers or consumers.
Hydro, which is among Europe’s largest renewable-powered aluminium producers, has been scaling its low-carbon offerings across the automotive and construction sectors. The company’s Hydro CIRCAL line, for example, contains at least 75% post-consumer scrap and is already used in several automotive and building applications.
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Premium strategy aligned with EU supply-chain rules
For Mercedes, adopting low-carbon inputs aligns with the European Union’s tightening sustainability framework. Under the EU’s Carbon Border Adjustment Mechanism (CBAM) and Corporate Sustainability Reporting Directive (CSRD), companies will soon need to disclose and reduce embedded emissions in materials like aluminium and steel.
Analysts say this early integration gives the automaker a head start in managing regulatory and reputational risk while appealing to climate-conscious consumers in the premium EV segment.
The move also demonstrates how sustainability is increasingly being built into product design rather than treated as a downstream reporting exercise. By sourcing cleaner inputs now, Mercedes and Hydro are effectively future-proofing their operations against tightening carbon-pricing regimes and investor expectations.
Broader implications for the EV supply chain
The partnership is likely to resonate across the EV and materials markets as automakers race to lower the lifecycle emissions of electric models—an area often criticized for energy-intensive battery and metal production.
Analysts expect low-carbon aluminium demand to rise sharply as OEMs push to align production with 1.5°C-compatible trajectories. The International Aluminium Institute estimates that decarbonizing global aluminium production could avoid up to 1 billion tons of CO₂ annually by mid-century.
For now, Mercedes’ collaboration with Norsk Hydro adds to a growing list of manufacturer-supplier alliances aimed at cleaner material sourcing. As regulatory and investor pressure mounts, such partnerships could become the new baseline for credibility in sustainable manufacturing.
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