Power cable manufacturer NKT has signed an agreement with Hydro to secure a supply of low-carbon aluminium wire rod through to 2033.
The estimated contract value of €1bn ($1.1bn) is contingent on quantity, duration and future metal prices.
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NKT president and CEO Claes Westerlind stated: “This long-term supply agreement with Hydro not only guarantees a long-term, European supply of low-carbon aluminium – it also reinforces our position as a sustainability leader in the power cable industry.
“It supports our strategy to continuously improve the carbon intensity of our power cables, thereby supporting both our own short and long-term targets and our customers’ decarbonisation ambitions.
“Given the current geopolitical landscape, securing reliable, local supply chains is increasingly important.”
The agreement will enable NKT to provide power cable solutions with a significantly reduced carbon footprint, aligning with its sustainability goals.
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By GlobalDataNKT is now positioned to meet increasing demand for medium and high-voltage power cable solutions, strengthening Europe’s ability to build a secure, clean power grid.
NKT has the first rights to Hydro’s REDUXA 4.0 aluminium – the lowest embodied carbon grade available.
Hydro is targeting a further 25% reduction in carbon footprint by 2030, with NKT having first rights to Hydro’s REDUXA 3.0 aluminium.
To address NKT’s expanding demand, Hydro has announced a €140m investment in a new casthouse.
The investment is expected to ensure a sustainable, local supply chain while lessening risks associated with potential regulatory and geopolitical changes.
Hydro president and CEO Eivind Kallevik stated: “It is with a sense of urgency that Europe is now mobilising to reduce dependency on fossil fuel imports, introduce more homegrown, renewable power, and ensure security of supply of critical raw materials.
“Together with NKT, we are building a supply chain to provide responsibly sourced aluminium for the infrastructure makeover that Europe needs to bring down energy prices, accelerate the energy transition and boost European competitiveness.”
In October 2025, NKT secured a framework agreement with Enexis Netbeheer to supply medium voltage power cables.
