Next-gen Porsche cars to flaunt Hydro REDUXA low-carbon aluminium

The Norwegian aluminium giant Hydro is recognised globally as one of the leading producers of low-carbon aluminium. In a recent collaboration with Porsche (the German sports car manufacturer), Hydro intensified its partnership to further decarbonise Porsche's sports car supply chain. The agreement, signed in Stuttgart on July 9, introduces a pioneering business model for low-carbon aluminium to enhance sustainability and transparency in the automotive industry.

"With this collaboration, we bring an innovative business model to the market to allow industries to further decarbonise their supply chains. We are very excited to work with a fast moving pioneer like Porsche to help them deliver on their ambitious climate targets. I hope this serves as an inspiration for others to follow suit," said Eivind Kallevik, President and CEO of Hydro.

About the deal

In April 2023, Hydro and Porsche signed a letter of intent to reduce the carbon footprint of Porsche's car models. Building on this foundation, the companies have now entered into a long-term agreement for Hydro to supply top-tier, low-carbon aluminium for Porsche's vehicle production in the coming years.

This agreement includes capacity reservation and product development of low-carbon aluminium, enabling Porsche to increase the use of recycled materials and lower the carbon footprint of aluminium components. These efforts will contribute to achieving a net-carbon-neutral value chain for newly produced vehicles by 2030.

Hydro REDUXA & Hydro CIRCAL

The agreement encompasses Hydro REDUXA primary low-carbon aluminium and Hydro CIRCAL 75R recycled aluminium, which contains at least 75 per cent post-consumer scrap. This aluminium is slated to be used in producing Porsche's next generation of sports cars.

Beyond future low-carbon and recycled aluminium deliveries, the agreement includes technical collaboration on developing new alloys with higher recycled content. Additionally, the two companies will explore integrating Hydro's long-term decarbonisation projects into Porsche's supply chain, such as the emission-free smelting technology currently in development.

"The collaboration with Hydro is an important milestone for Porsche on our path to decarbonisation along the entire value chain. In addition, the partnership contributes to responsible sourcing, because Hydro's aluminium supply chain is transparent," says Barbara Frenkel, Executive Board Member for Procurement at Porsche AG.

About Hydro's approach & vision

Hydro's integrated value chain—from bauxite mining and alumina refining to energy generation, smelting, extrusion, and recycling—enables the company to provide low-carbon aluminium products with full traceability and transparency at every stage, from mine to metal.

This comprehensive approach is crucial for documenting emission reductions and achieving Hydro's goal of a 30 per cent reduction in carbon emissions by 2030. Much of this reduction will come from fuel switching and boiler electrification using renewable energy at the Alunorte alumina refinery in Brazil. Hydro's approach involves fundamentally reimagining every step of the value chain to lead the green aluminium transition. This decarbonisation effort aims to support a just transition and contribute to a nature-positive future.