• 05/05/2025
  • Report

Hydro and Nemak strengthen collaboration to further decarbonize the automobile industry

Aluminium producer Hydro and automotive supplier Nemak have signed a letter of intent (LOI) to jointly develop low-carbon aluminium casting solutions for the automotive industry. The agreement aims to accelerate decarbonization in vehicle manufacturing by pushing recycling rates and shifting energy sources towards cleaner alternatives.

Closeup of aluminum bars

Reducing CO₂ through recycling and cleaner energy


The initiative includes using more post-consumer scrap and switching to cleaner energy sources, such as natural gas and electrical boilers, at Hydro’s Alunorte alumina refinery in Brazil. The long-term goal is to develop foundry alloy aluminium with a carbon footprint of less than 3.0 kg CO₂ per kilogram.

“Expectations from society and customers towards business and industry to drive change are rising rapidly. Our strengthened collaboration with Nemak means we will develop more circular products and work towards pushing carbon footprint reduction to the limit. This can make a difference for automotive companies looking to decarbonize their supply chains and meet ambitious sustainability goals,” says Hanne Simensen, Executive Vice President for Hydro Aluminium Metal.

Hydro already supplies Nemak with Hydro REDUXA primary foundry alloy (PFA), which has a carbon footprint below 4.0 kg CO₂/kg aluminium. This is 25% of the global average, and the new LOI targets an additional 25% reduction.
 

Long-standing partnership and R&D cooperation


The companies have collaborated for more than two decades. The LOI aims to expand the use of post-consumer scrap in casting alloys and includes a joint effort in research and development to create the next generation of automotive alloys. Hydro and Nemak both aim to produce net-zero products by 2050 or earlier.

Polish recycling company Alumetal, fully owned by Hydro since 2023, is also supplying foundry alloy products to Nemak.

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Lightweighting and sustainability


Aluminium plays a key role in making vehicles lighter and more energy efficient, particularly in electric and hybrid models.

“As the automotive industry accelerates toward sustainability, Nemak is at the forefront of delivering lightweighting solutions. Aluminium is one of the most effective ways to improve the energy efficiency of electric and hybrid vehicles, and through our collaboration with Hydro, we are enhancing our lightweighting solutions to drive sustainable mobility forward,” says Armando Tamez, CEO of Nemak.


Traceable and low-carbon aluminium


Hydro’s integrated value chain—from bauxite mining and alumina refining to recycling—supports traceability and emission reduction. At the Alunorte refinery, Hydro plans to reduce carbon emissions by replacing fuel sources and electrifying boilers, contributing to its goal of a 30% CO₂ reduction by 2030.