According to Reuters, executives at German luxury automaker Mercedes-Benz revealed that the company is cutting CO₂ emissions in its new electric vehicle (EV) production line by using aluminum produced with renewable energy and recycled materials. This initiative is part of the company’s broader efforts to decarbonize its operations.

Mercedes-Benz partnered with Norwegian metal producer Norsk Hydro to develop this low-carbon aluminum, which is now being used in the manufacturing of the new electric CLA model. Executives from both companies emphasized that this collaboration demonstrates how premium consumer goods manufacturers may be willing to pay extra for raw materials to achieve more sustainable product attributes.

Gunnar Guthenke, Vice President of Procurement and Supplier Quality at Mercedes-Benz, stated, “Using ultra-pure, low-carbon steel or aluminum naturally incurs additional costs. Sustainability is inherently linked to the premium products we produce.”

However, neither company disclosed detailed cost breakdowns, only noting that the new electric CLA reduces CO₂ emissions by 40% compared to its fossil-fueled counterpart.

Eivind Kallevik, CEO of Norsk Hydro, highlighted that while decarbonizing the value chain is expensive, partnerships like this offer a way to share costs rather than placing the burden solely on manufacturers or consumers.

Eivind Kallevik added that even against the backdrop of sluggish economic growth in recent years and overall pressure on the aluminum market, the price premium for this low-carbon metal has not deterred buyers. “We are seeing growing demand for low-carbon products,” he noted.

The two companies revealed that the aluminum produced by Norsk Hydro at its Årdal plant on Norway’s coast for Mercedes-Benz emits just 3 kilograms (approximately 6.6 pounds) of CO₂ per kilogram of aluminum, compared to the global average of 16.7 kilograms per kilogram. This aluminum also incorporates 25% recycled scrap material, further reducing reliance on energy-intensive smelting of primary metal.

Previously, Mercedes-Benz faced controversy over a sustainability-themed advertising campaign while being sued by a German climate group over environmental concerns. However, a German court dismissed the lawsuit in 2022.