Hydro, a leader in aluminum and renewable energy, and German sports car manufacturer Porsche AG, have enhanced their collaborative efforts to reduce the carbon footprint of automotive manufacturing. A recently finalized agreement in Stuttgart on July 9 introduces a new business model for supplying low-carbon aluminum, aiming to foster sustainability and transparency in the automotive industry.
Long-term Agreement to Decarbonize Production
Following a letter of intent signed in April 2023, Hydro and Porsche have entered into a long-term agreement which facilitates Hydro's supply of low-carbon aluminum for Porsche’s vehicle production. This partnership is aligned with both companies' goals to achieve a net-carbon neutral production of new vehicles by 2030, supporting the increased use of recycled materials and reducing the carbon footprint of aluminum components.
Technical Collaboration and Sustainable Development
The collaboration extends to the development of new aluminum alloys with increased recycled content and the exploration of integrating Hydro’s emission-free smelting technology into Porsche’s supply chain. This reflects a shared commitment to advancing sustainable manufacturing practices.
Barbara Frenkel, Executive Board Member for Procurement at Porsche AG, commented:
"The collaboration with Hydro is an important milestone for Porsche on our path to decarbonization along the entire value chain. In addition, the partnership contributes to responsible sourcing, because Hydro's aluminium supply chain is transparent."
Eivind Kallevik, President and CEO of Hydro, remarked on the collaboration:
“Securing access to responsibly sourced materials is a key challenge for the automotive industry, and we are happy to be part of the solution. There is no such thing as a fast lane towards a more sustainable future, but together with Porsche we are accelerating our efforts. Our collaboration is a great recognition of Hydro’s work to decarbonize, minimize environmental impact and contribute to viable societies along the entire aluminium value chain.”
