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Wednesday, 21 October 2026
Markets

Mercedes Taps Low-Carbon Aluminium to Slash EV Emissions

By Katherine (Kay)2 min read

NORWAY, 29 September 2025 – Luxury automaker Mercedes-Benz is cutting the environmental footprint of its electric vehicles by using aluminium produced with renewable energy and recycled materials, executives told Reuters.

The initiative, part of a partnership with Norwegian metals producer Norsk Hydro, will debut in the new electric CLA model, marking a significant step in Mercedes’ broader push to decarbonise its operations.

“There are of course extra costs from using an especially low-carbon steel or aluminium,” said Gunnar Guthenke, vice president of procurement and supplier quality at Mercedes-Benz. “Sustainability and desirable products, such as the ones we produce, simply go hand in hand.”

40% Lower Emissions for the New CLA

According to the companies, the new CLA was made with 40% less CO2 emissions compared with its non-electric predecessor.

At Norsk Hydro’s Aardal facility on Norway’s coast, the aluminium produced emits just 3 kg of CO2 per kilogram of aluminium, far below the global average of 16.7 kg. One quarter of the mix comes from recycled aluminium scrap, further reducing the reliance on energy-intensive primary metal.

Norsk Hydro CEO Eivind Kallevik said partnerships like this allow manufacturers and suppliers to share the costs of decarbonisation:

“While decarbonising value chains can be costly, partnerships offer a way to share the burden, so it is not borne by manufacturers or customers alone,” he said.

Despite recent challenges in the aluminium market, Kallevik noted the premium price of low-carbon metals has not discouraged demand: “We are seeing a growing demand for low-carbon products.”

Green Luxury in Focus

Mercedes has faced past scrutiny over its environmental claims, including a lawsuit from a German climate group that was dropped in 2022. With the CLA launch, the automaker is reinforcing its strategy to link luxury products with sustainability.

Source: Reuters

Author

  • Kay like to explores the intersection of money, power, and the curious humans behind them. With a flair for storytelling and a soft spot for market drama, she brings a fresh and sharp voice to Southeast Asia’s business scene.
    Her work blends analysis with narrative, turning headlines into human stories that cut through the noise. Whether unpacking boardroom maneuvers, policy shifts, or the personalities shaping regional markets, Kay offers readers a perspective that is both insightful and relatable — always with a touch of wit.