The decarbonization will be done by using more post-consumer scrap and changing the energy mix to cleaner energy sources like natural gas and electrical boilers at Hydro’s Alunorte alumina refinery in Brazil. The long-term ambition is to develop foundry alloy aluminium solutions qualified for automotive applications with a CO2 footprint below 3.0 kg CO2 per kilo aluminium.

“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), a premium product with an estimated carbon footprint below 4.0 kg CO2 per kilo aluminium. This is 25 percent of the global average and the LOI aims to further reduce the CO2 footprint by 25 percent. 

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

Increased recycling, pushing CO2 reduction to the limit

Hydro and Nemak have collaborated for more than two decades to deliver high-quality foundry alloy products to car manufacturers. Now, they are switching gears by using more recycled post-consumer scrap in the foundry alloy product portfolio. 

The objective of the LOI is to utilize the full potential of aluminium as a low-carbon solution in casting components, such as engine and structural components for vehicles. 

The LOI includes cooperation on research and development to bring forth the next generation of automotive alloys used in casting components. Hydro and Nemak share the decarbonization target of making net-zero products by 2050 or earlier.

Lightweighting solutions

For more than 40 years, there has been continuous growth in the use of aluminium in the automotive industry. This is due to its light weight, alloy strength, corrosion resistance and the metal’s processing possibilities.

“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, Chief Executive Officer for Nemak.

Integrated value chain

Hydro’s integrated value chain, which spans from bauxite mining and alumina refining to energy generation, smelting, extrusion, and recycling, allows the company to offer low-carbon aluminium products with traceability and transparency in every step from mine to metal. 

This is key to document emission cuts and reach Hydro’s target of 30 percent reduction in carbon emissions by 2030, driven largely by fuel switch and boiler electrification using renewable energy at the Alunorte alumina refinery in Brazil.