Hydro Aluminum Henderson secures US$17.4 million to use cutting-edge solutions for automotive industry

Hydro's aluminium recycling plant in Henderson, Kentucky, has been awarded $17.4 million in tax credits under the Inflation Reduction Act to support advanced technology for the automotive industry. The investment will be directed towards the HyForge project, which will introduce innovative technology to the U.S. to cater to the expanding automotive market.

Image Source: Hydro

Announced by Hydro in May 2024, the HyForge project enhances automotive-focused production at the company's Henderson recycling plant. After a highly competitive selection process, the U.S. Department of Energy granted the funding through the Section 48C Qualifying Advanced Energy Project tax credit program, which evaluated over 800 projects across the U.S.

About HyForge project

The HyForge project is set to become operational after a two-year construction phase, supplying high-quality components to the U.S. automotive market. Currently, Hydro Henderson's plant has an annual production capacity of 90,000 tonnes, and the expansion will add 28,000 tonnes.

Hydro’s premium aluminium forge stock, HyForge™, is manufactured using its innovative Low Pressure Casting (LPC) technology. It is delivered with a certified low-carbon footprint under the Hydro REDUXA 4.0 standard, setting a new benchmark for low-emission aluminium production.

"We appreciate the support from the Department of Energy and the Department of the Treasury as well as their recognition of how Hydro's recycling initiatives in the U.S. support strengthening supply chains for OEMs in America with domestically produced, low-carbon materials. This award acknowledges not only the groundbreaking technologies being deployed by Hydro, but also broad support from local and regional stakeholders for Hydro's continued investment in the Henderson community," said J. Duncan Pitchford, President of Hydro Aluminum Metals USA.

Use of cutting-edge technology

The HyForge line introduces cutting-edge technology pioneered by Hydro in Europe to the U.S., supporting the growing automotive market. This innovation enables the plant to produce smaller-diameter, high-quality forging stock, which can be directly forged into premium automotive components. Aluminium's exceptional strength-to-weight ratio makes it a cost-effective, low-emission alternative to heavier materials. Its durability, corrosion resistance, and low maintenance needs make it a preferred choice across industries, including automotive, contributing to long-term resource efficiency.

By incorporating high percentages of end-of-life scrap, HyForge production at Henderson will offer products with a carbon footprint over 30 per cent lower than existing options in the U.S. market. Additionally, by eliminating a traditional production step for automotive forging stock, HyForge provides cost-effective solutions for automakers striving to further lightweight their vehicles.