Mercedes reduces the environmental footprint of EVs with low-carbon aluminum

Executives at Mercedes-Benz said that aluminium made from renewable energy and recycling helps the luxury automaker reduce CO2 emissions when producing its new electric vehicle line. This is part of an overall effort to decarbonise their operations.

Mercedes' new CLA electric model is made from low-carbon aluminum, which was developed in partnership by Norsk Hydro and Norwegian metals manufacturer Norsk Hydro.

Executives of both companies stated that the collaboration was an example of how manufacturers of premium consumer goods may pay more for raw materials to achieve a profile with a higher environmental impact.

Gunnar Guthenke is the vice president for Mercedes-Benz's procurement and supplier quality. He said that there are extra costs when using a low-carbon steel.

He said that "Sustainability, and desirable products such as those we produce, go hand-in-hand."

Demand for low-carbon products is growing.

Companies declined to give a breakdown of the costs but claimed that the new CLA had 40% less CO2 emissions compared to its predecessor.

Norsk Hydro CEO Eivind KALLEVIK said that while decarbonising value chain can be expensive, partnerships offer a way of sharing the burden so that it isn't borne solely by the manufacturers or customers.

He added that the metal's premium price is not deterring customers, even on a market more difficult for aluminium in recent years, marked by low economic expansion.

Kallevik stated that "we are seeing an increase in demand for products with low carbon emissions."

According to the companies, metal produced for Mercedes in Norsk Hydro Aardal along Norway's coast emits just 3 kg of CO2 per kilogram of aluminum compared with an average global of 16.7 kg.

This mix includes a quarter of aluminum scrap, further reducing primary metal volume from the energy intensive smelter.

Mercedes faced criticism in the past for an advertisement campaign that highlighted sustainability, at a time it was facing a suit from a German climate group over its environmental impact. The suit was

German court drops case

In 2022. (Reporting and editing by Terje Sosvik, Lincoln Feast, and Nora Buli)

(source: Reuters)