Mercedes-Benz announced 2039 emissions targets, setting a 90% cut in production emissions and a 70% reduction across the value chain against 2019 levels. The automaker also committed to an 80% use-phase emissions reduction, though this target depends on how quickly customers adopt electric vehicles and how fast charging infrastructure develops.
The company signed a binding offtake agreement with Hydro for lower-carbon aluminium starting in 2026. Hydro will supply at least 10% of Mercedes-Benz's primary aluminium, reducing the carbon footprint from around 4.0 kg CO₂e per kg to 3.5 kg in 2028 and 3.0 kg from 2030. Recycled Hydro Circal aluminium will follow in 2027.
Mercedes-Benz also joined the First Movers Coalition, committing to sourcing at least 10% of primary aluminium from lower-carbon sources by 2030. Net zero, defined as at least a 90% cut with the remainder permanently neutralised, is targeted for the 2040s.
Steel decarbonisation remains early stage. A pilot with Anglo American and HyIron converted South African iron ore fines into hydrogen-reduced iron for a demonstrator EQS part. An MOU now targets industrial-scale testing of the process.
Jörg Burzer, Chief Technology Officer, Development and Procurement at Mercedes-Benz, said: "Aluminium is one of the most important levers in our supply chain. By joining the First Movers Coalition, we are sending a clear signal to the market: we want lower-carbon aluminium in our vehicles. This gives our partners planning security and strengthens the resilience of our supply chain."