Porsche and Hydro Team to Decarbonize the Supply Chain of Sports Cars
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Porsche AG and Norsk Hydro ASA will work together to further reduce the carbon footprint of Porsche’s car models by using low-carbon aluminium and extrusions from Hydro. In addition, the two companies will collaborate on an innovative value chain concept for battery materials and battery recycling. The German luxury sports car maker and the Norwegian industrial company have signed an agreement in Oslo today, to strengthen the sustainability strategies of both companies.
Hydro will deliver Porsche and several of Porsche’s component suppliers with its low-carbon aluminium with one of the lowest CO2footprints on the market today, covering emissions from the mine to the metal. By 2025, Hydro will enable Porsche to reduce the footprint of the aluminium in future vehicle projects to around 3.5 kilograms of CO2 per kilogram aluminium used. This is approximately 60 percent lower than the average primary aluminium consumed in Europe currently.
“Porsche is working towards a net carbon-neutral value chain of our vehicles in 2030. Aluminium and materials for battery production play a key role in our sustainability strategy. With Hydro’s aluminium we aim to substantially reduce CO2 emissions deriving from this important material,” says Barbara Frenkel, Executive Board Member for Procurement at Porsche AG.
“To reduce global warming, we need to decarbonize energy systems, produce for circularity and recycle resources already in use. Aluminium is a key enabler in the green transition, but supply chains must become emission free. The industry needs to partner up to make this happen and we are pleased to be able to work with a pioneer like Porsche in our common task to create a nearly carbon-free car,” says Hilde Merete Aasheim, President and CEO of Hydro.
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Due to its superior properties in pliability, light weight and strength, the ratio of aluminium in Porsche cars has been increasing steadily. Aluminium is one of the key elements in the transformation of an electrical vehicle into a sports car. Already today, aluminium constitutes around 30 percent of the total weight of the Porsche Taycan, the brand’s first fully electric sports car. As part of the ambitious decarbonization plans of both companies, Hydro aims to supply Porsche and Porsche’s component suppliers with aluminium targeting CO2 neutrality in 2030. Hydro will do this by increasing the use of renewable energy in aluminium production, and recycling post-consumer scrap to increase circularity and reduce the footprint of the aluminium produced.
Another important part of the agreement between the two companies will be the proof of concept for building a sustainable battery value chain in Europe. Porsche and Hydro will cooperate in the development of a roadmap to recycle battery materials in Europe. One of the key elements of this project will be to investigate how to build efficient closed loop solutions for Porsche’s EV batteries.
“Access to sustainably sourced raw materials is a key challenge for the automotive industry. Hydro has extensive experience in the recycling of battery raw materials. At Porsche we have a clear commitment to increase the usage of recycled materials in our vehicles. The principle of a circular economy is something we share with Hydro. We aim to secure our supply chain in the long run and therefore expect valuable input from our recycling project with Hydro,” says Frenkel.
The European supply chain for materials, vital for battery production, is still in its early stage. Recycling is expected to play a crucial part in meeting the rising demand for automotive batteries in the future. Collaborations across traditional industries will be required to succeed. Porsche and Hydro are committed to exploring opportunities for joint contributions in this field. Both companies expect the first feasibility results of joint battery recycling in 2025.