Mercedes-Benz and German-Namibian company HyIron have signed a memorandum of understanding (MoU) to expand the production of low-carbon iron using green hydrogen and explore its use in the automotive steel supply chain, Solarquarter reported.
The agreement aims to test and validate HyIron’s technology for large-scale industrial production and assess its suitability for future vehicle manufacturing. Announced during the Mercedes-Benz Sustainability Dialogue 2026, the partnership builds on the results of an earlier pilot project.
The pilot project involved Mercedes-Benz, mining company Anglo American and HyIron. South African iron ore fines were converted into iron using green hydrogen instead of conventional coal-based methods. The resulting material was used to produce a demonstration component for the all-electric Mercedes-Benz EQS, showing its potential for use in vehicles.
HyIron operates its Oshivela plant in Namibia, where it uses a rotary kiln process to produce iron from iron ore with green hydrogen. According to the company, the process can reduce carbon dioxide emissions by approximately 1.8 tonnes for every tonne of iron produced compared with conventional production methods.
Under the new agreement, Mercedes-Benz and HyIron will examine the technical requirements for increasing production capacity and using the technology on a commercial scale. The partnership also aims to develop a cleaner and more sustainable steel supply chain for the automotive industry.
Mercedes-Benz said the initiative could provide a model for improving transparency, ensuring responsible sourcing of raw materials and reducing emissions across the supply chain, from mining to the production of vehicle components.
The collaboration reflects the automotive industry’s growing interest in low-carbon materials as manufacturers seek to reduce emissions across their production processes. By exploring iron production using green hydrogen, Mercedes-Benz aims to support cleaner industrial operations and more sustainable vehicle manufacturing.
