Hydro, Porsche sign agreement for green aluminium in auto industry’s latest effort to decarbonize

Norway-based aluminium producer Hydro and German car manufacturer Porsche signed a long-term agreement on Tuesday July 9 for supply of low-carbon aluminium to further decarbonize the supply chain of Porsche’s sports cars. The agreement follows the letter of intent signed in Aprill

Under the agreement, Hydro will supply Porsche with both primary low-carbon aluminium and recycled aluminium containing a minimum of 75% post-consumer scrap, allowing the car manufacturer to reduce the carbon footprint of aluminium components.

“Porsche and Hydro are also testing the areas of the car in which aluminium with an even higher proportion of recycled material can be used,” according to Porsche.

The companies will also collaborate on the development of new alloys with higher recycled content and explore how Hydro’s long-term decarbonization projects, including the emission-free smelting technology currently under development, can be integrated into Porsche’s supply chain.

Hydro continues to work on its new HalZero technology, which aims to fully decarbonize the smelting of aluminium and is currently producing in lab scale.

“The collaboration with Hydro is an important milestone for Porsche on our path to decarbonization along the entire value chain,” Barbara Frenkel, executive board member for procurement at Porsche, said.

“Securing access to responsibly sourced materials is a key challenge for the automotive industry, and we are happy to be part of the solution,” Eivind Kallevik, president and chief executive officer of Hydro, said. “There is no such thing as a fast lane towards a more sustainable future, but together with Porsche we are accelerating our efforts.

Part of a trend

Porsche is not the first car manufacturer to partner with Hydro in an effort to decarbonize its aluminium content.

In December, the aluminium producer announced it entered a strategic partnership with Swedish car manufacturer Volvo to supply low-carbon aluminium.

In December 2022, Mercedes-Benz signed a letter of intent with Hydro for both primary low-carbon aluminium and recycled aluminium supplies.

The agreement with Mercedes-Benz also included the implementation of a closed-loop recycling collaboration.

To meet this growing demand from the auto industry, Hydro has announced expansion of its operations both in Europe and in the US.

The automotive sector has been driving the demand for low-carbon aluminium globally, with major auto makers, including BMW and Renault, entering supply agreements with producers for green aluminium.

Follow discussions around decarbonizing the aluminium industry with the latest price trends, market insights and forecasts. Find out more.

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