Norsk Hyrdo and Porsche sign supply agreement for low-carbon aluminium

News Analysis

5

May

2023

Norsk Hyrdo and Porsche sign supply agreement for low-carbon aluminium

Norsk Hyrdo and Porsche have entered into a supply agreement under which Hydro will deliver low-carbon aluminium for use in lightweighting the brand’s luxury sports cars and EV models. 

The two companies already have an existing association for the supply of aluminium components, however, under the new deal, Hydro will supply Porsche with aluminium through its REDUXA brand. The REDUXA brand was specifically developed by Hydro as a low-carbon alternative for the manufacturing industry and is produced utilising mostly renewable energy sources from hydro power plants in the Røldal-Suldal region. This allows for a significant reduction in the carbon footprint of aluminium production.

OEMs sourcing aluminium can leverage “green” brands like REDUXA to balance their scope three carbon footprint, supporting companies like Porsche to move towards their net-Zero carbon emission targets. In addition to the proposed aluminium supply, the two companies also aim to jointly research and develop a European battery recycling network for Porsche’s EV battery materials.

The automotive industry is a significant consumer of aluminium, and its use in vehicles has grown in popularity to improve efficiency through lightweighting. This shift is still ongoing and is forecast to accelerate with the electric vehicle (EV) revolution, where lightweighting translates to cost reduction of battery materials. As a result, aluminium and its carbon emissions form a key part of energy transition to meet net-Zero targets.


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