HyIron operates the Oshivela plant in Namibia, where ore is reduced using green hydrogen instead of coal
German carmaker Mercedes-Benz is considering integrating iron produced in Namibia with green hydrogen into its supply chain. The company has signed an agreement with German-Namibian company HyIron to scale up this technology to an industrial level, reports The Brief.
The parties signed a memorandum of understanding at the Mercedes-Benz Sustainability Dialogue 2026. It was preceded by a pilot project in which a demonstration component for the all-electric Mercedes-Benz EQS was made from green iron.
As part of the pilot project, implemented together with mining company Anglo American, fine iron ore from South Africa was processed using green hydrogen instead of coal. The use of the resulting raw material in an EQS part confirmed the basic suitability of the material for automotive manufacturing.
HyIron operates the Oshivela plant in Namibia, which uses a rotary kiln process to reduce iron ore with green hydrogen instead of conventional coal. According to the producer, the technology avoids about 1.8 tonnes of CO₂ emissions per tonne of iron produced compared to conventional methods.
The companies will now focus on further technical trials to confirm that the process can deliver industrial volumes and meet Mercedes-Benz’s automotive production requirements. The agreement will also open the way for Namibian green iron to the international automotive market and give HyIron a chance to take the Oshivela plant’s technology beyond the pilot stage.
As GMK Center reported earlier, the European Parliament’s Committee on the Environment backed the introduction of a special low-carbon steel credit under the EU CO₂ emission standards for passenger cars and vans. The low-carbon steel credit will encourage carmakers to use environmentally friendly material. This will help create sustainable demand for green metal while supporting industrial production, preserving quality jobs and attracting additional investment in Europe.
