Wednesday, February 8, 2023

BMW Group announces new agreements for the supply of low-CO2 steel in the US and China

BMW Group expands its target to use low CO2 steel, now with agreements in USA and China

One of the biggest sustainability initiatives by car manufacturers focuses on the materials used for their vehicles. is one of them steel, which accounts for 20% of the total CO2 emissions in the supply chainIn third place after battery cells and aluminum.

To reduce these emissions, the BMW Group last year launched a Agreement for supply of low carbon steel with Swedish company H2 Green Steel, Also Europe, the group signed a Agreement with Salzgitter AG To supply steel with low CO2 emissions with the aim of using the steel in series production of cars at BMW Group’s European plants from 2026. Other manufacturers have also entered into similar agreements, such as Volkswagen, Ford and even Volvo which ensured the supply of CO2-neutral steel with SSAB, with which Mercedes-Benz also has an agreement.

Apart from this, a group has also been created Closed material cycle for sheet steel waste With various steel suppliers, returning the scrap to BMW Group plants for re-use.

Although the BMW Group already has an agreement at European level for the supply of CO2-reduced steel, it has now announced Extending its aims to the United States and China, for which it has entered into new agreements, Joachim Post, Member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network, said:

“Steel is one of the main sources of CO2 emissions in our supply chain. That is why we are comprehensively reorganizing our steel portfolio, so that by 2026 we can supply more than a third of CO2-reduced steel to our global production network. This will reduce the carbon footprint of our supply chain by 900,000 tonnes per year, while driving the transformation of the steel industry.

For the United States, the group announced agreements with national steel producers Steel Dynamics (SDI) and Big River Steel as well as a US Steel facility To use renewable energy sources in its local steel production. In the US and Mexico, the group’s flat steel is supplied through Electric Arc Furnace (EAF) Steel Making ProcessWhich relies on electric power to melt iron and steel scrap.

This manufacturing process has significant CO2 savings potential compared to producing carbon-based steel in a large furnace. CO2-reduced steel is used at the BMW Group’s plants in Spartanburg and San Luis Potosi For making body of BMW vehicles,


In addition to sourcing CO2-less steel, BMW Group has also invested in a new method for producing CO2-free steel developed by US startup Boston Metal., through its venture capital fund, BMW i Ventures. The company uses an electrolysis cell to produce molten iron which is then transformed into steel.

In China, BMW Group has announced the signing Tie-up with steel maker HBIS GroupWhich will supply CO2-reduced steel to BMW Group’s plants in Shenyang from 2023. BMW Group will be the first carmaker in China to use CO2-reduced steel from HBIS Group in series production,

Nation World News Desk
Nation World News Desk
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