Mercedes-Benz targets 90% production emissions cut by 2039

Mercedes-Benz has put hard numbers on its Ambition 2039 pathway: a 90% cut in production emissions and a 70% reduction across the relevant value chain by 2039, both measured against a 2019 baseline. The Stuttgart automaker paired the update with a binding offtake agreement for lower-carbon aluminium from Norwegian supplier Hydro and membership of the First Movers Coalition (a corporate buying consortium for emerging clean technologies).

The numbers split by scope. The 80% use-phase target — emissions from driving the cars — is conditional, applying only as market conditions allow, with customer demand and charging infrastructure development cited as gating factors. Net zero, defined as at least a 90% cut with the remainder permanently neutralised, is targeted for the 2040s.

What does the Hydro deal actually deliver?

Hydro will supply at least 10% of Mercedes-Benz's primary aluminium from 2026. The carbon footprint of that metal drops from around 4.0 kg CO₂e (carbon dioxide equivalent) per kilogram of aluminium to 3.5 kg in 2028, then 3.0 kg from 2030. Recycled Hydro Circal aluminium follows from 2027. Separately, the First Movers Coalition pledge commits Mercedes-Benz to sourcing at least 10% of its primary aluminium from low-carbon routes by 2030.

Aluminium matters here because it is energy-intensive to produce and widely used in body structures, battery enclosures and drivetrain components. Tightening EU fleet CO₂ rules and the Euro 7 emissions package both push OEMs (carmakers) upstream into supply-chain carbon, where materials account for roughly a fifth to a quarter of a battery-electric vehicle's lifetime footprint.

Jörg Burzer, Chief Technology Officer, Development & Procurement at Mercedes-Benz, said: "Aluminium is one of the most important levers in our supply chain. By joining the First Movers Coalition, we are sending a clear signal to the market: we want lower-carbon aluminium in our vehicles. This gives our partners planning security and strengthens the resilience of our supply chain."

Note the framing. This is a stated intention backed by a binding offtake for one input — not a confirmed decarbonisation of the full metals portfolio. The 10% share of primary aluminium is the verified commitment; the trajectory to 3.0 kg CO₂e per kg rests on Hydro's own smelter decarbonisation, which buyers should track against audited production data.

Where does steel stand?

Steel is earlier in the process. A pilot with miner Anglo American and technology firm HyIron converted South African iron ore fines into hydrogen-reduced iron (iron made using hydrogen instead of coal as the reductant), which went into a demonstrator part for the Mercedes-Benz EQS. A memorandum of understanding now targets industrial-scale testing. No volumes or dates were given.

What to watch next

Watch the 2026 start of Hydro deliveries and whether the 3.5 kg footprint level lands in 2028. The Anglo American–HyIron programme's move from demonstrator part to industrial-scale trial is the signal for steel. And the conditional 80% use-phase target depends on factors outside Mercedes-Benz's control — charging buildout and EV demand — so treat it as an intention, not a commitment.