Mercedes-Benz And Hyiron Partner To Scale Green Hydrogen-Based Low-Carbon Iron Production

Mercedes-Benz and German-Namibian company HyIron have signed a Memorandum of Understanding (MoU) to advance the industrial production of low-carbon iron using green hydrogen. The agreement aims to scale up hydrogen-based iron production and explore its potential use in the automotive steel supply chain. It builds on the successful results of an earlier pilot project and marks another step towards reducing emissions in vehicle manufacturing.

The MoU was announced during the Mercedes-Benz Sustainability Dialogue 2026. It focuses on testing and validating HyIron’s technology for industrial-scale production, with the objective of enabling its potential application in future vehicle manufacturing processes.

The collaboration follows a successful pilot project involving Mercedes-Benz, mining company Anglo American, and HyIron. During the project, South African iron ore fines were reduced into iron using green hydrogen. The resulting material was subsequently processed into a demonstrator component for the all-electric Mercedes-Benz EQS, demonstrating the potential of hydrogen-reduced iron in automotive applications.

HyIron operates its Oshivela plant in Namibia, where it uses a rotary kiln process to produce iron from iron ore using green hydrogen instead of conventional coal-based reduction methods. According to the company, this production method can save approximately 1.8 tonnes of carbon dioxide emissions for every tonne of iron produced compared with conventional iron production.

Through the new agreement, Mercedes-Benz and HyIron intend to assess the technical requirements for scaling up the process and establishing its suitability for mass production. The partnership also aims to support the development of a more sustainable steel supply chain for the automotive industry.

Mercedes-Benz stated that the initiative could serve as a blueprint for integrating transparency, responsible raw material sourcing, and emissions reduction throughout the value chain, from mining operations to finished vehicle components.

The collaboration reflects the growing interest of automotive manufacturers in low-carbon materials as they work towards reducing emissions beyond vehicle operations. By exploring green hydrogen-based iron production, Mercedes-Benz aims to support the development of cleaner industrial processes and more sustainable vehicle manufacturing.