AARDAL, Norway: Mercedes-Benz is cutting the carbon footprint of its new electric vehicles by using aluminium produced with renewable power and recycled metal, part of the carmaker’s broader push to decarbonise operations.

The German luxury automaker has partnered with Norwegian producer Norsk Hydro to supply the material for its new electric CLA model, which the companies say is manufactured with 40 percent less CO2 emissions than its non-electric predecessor.

“There are, of course, extra costs from using an especially low-carbon steel or aluminium,” said Gunnar Guthenke, vice president of procurement and supplier quality at Mercedes. “But sustainability and desirable products, such as the ones we produce, simply go hand in hand.”

Executives declined to detail cost differences but acknowledged Mercedes is paying a premium for the lower-emission aluminium. The move reflects a broader industry trend of premium brands absorbing higher raw material prices to appeal to environmentally conscious buyers.

Norsk Hydro CEO Eivind Kallevik said partnerships like this allow producers and manufacturers to share the costs of decarbonisation rather than passing them entirely to consumers.

“The metal’s price premium is not deterring buyers, even in a tougher aluminium market in recent years,” Kallevik said. “We are seeing a growing demand for low-carbon products.”

Hydro’s Aardal smelter on Norway’s coast, which supplied the aluminium for Mercedes, produces the metal with just 3 kg of CO2 emissions per kilogram of aluminium, compared to the global average of 16.7 kg.

Roughly one quarter of the alloy is made from scrap, further reducing reliance on energy-intensive primary production.

Mercedes’ sustainability claims have previously drawn scrutiny. The company faced criticism for a 2022 advertising campaign touting green credentials while defending itself against a lawsuit from a German climate group over its environmental impact. A court later dismissed the case.

Still, the carmaker is doubling down on its commitment to cut emissions across its supply chain, betting that customers will increasingly value vehicles with cleaner production footprints.

The new CLA model, unveiled earlier this month, is part of Mercedes’ push to compete in the premium EV segment while meeting stricter EU climate regulations.