… deal follows green iron trial for Mercedes-Benz EQS
Mercedes-Benz is exploring the use of green hydrogen-produced iron from Namibia in its vehicle manufacturing supply chain after signing an agreement with German-Namibian company Hylron to advance the technology towards industrial-scale production.
The two companies signed a Memorandum of Understanding (MoU) on 10 November 2026 during the Mercedes-Benz Sustainability Dialogue 2026, following a pilot project that produced iron for a demonstrator component used in the all-electric Mercedes-Benz EQS.
Under the agreement, Mercedes-Benz and Hylron will assess whether the technology can be scaled up for industrial production and whether the resulting iron can be used in the automotive manufacturer’s steel supply chain.
The pilot project, undertaken in collaboration with mining company Anglo American, involved processing iron ore fines sourced from South Africa using green hydrogen instead of coal.
The resulting iron was subsequently used to manufacture a demonstrator component for the Mercedes-Benz EQS, providing an initial demonstration of the material’s suitability for automotive applications.
Hylron operates the Oshivela plant in Namibia, where it uses a rotary kiln process to reduce iron ore with green hydrogen, replacing coal traditionally used in iron production.
According to Hylron, the technology can avoid approximately 1.8 tonnes of carbon dioxide emissions for every tonne of iron produced compared with conventional production methods.
The companies will now focus on further technical testing to determine whether the process can support industrial-scale production and meet the material requirements of Mercedes-Benz’s automotive manufacturing operations.
Mercedes-Benz said the collaboration would also support efforts to reduce emissions across its steel supply chain, from raw material extraction and processing to the manufacture of finished vehicle components.
The agreement could provide a route for Namibia-produced green iron to enter the international automotive market as the country seeks to develop industries linked to green hydrogen.
It also creates an opportunity for Hylron to expand the application of its Oshivela production technology beyond the pilot stage, subject to successful technical validation and commercial arrangements.
However, Mercedes-Benz and Hylron have not announced a binding supply agreement, the investment required for industrial expansion or a timeline for commercial production.
