One of Europe’s biggest car makers Renault is the latest to buy low emission steel for its EVs following the deliveries from ArcelorMittal, indicating the growing demand for clean steel.
The Usibor® 1500 XCarb® steel Renault is using has been produced via an electric arc furnace method using 75% recycled content and powered entirely by renewable electricity. The steel is being used in three Renault EVs – Renault 5 E-Tech electric, Alpine A290 and Renault 4 E-Tech electric. Renault joins Volvo, Mercedes and Geely in already using cleaner steel in their EV models, according to supply chain research.
The Renault move comes as Volvo unveiled a new EV model which contains “virtually zero carbon emissions” steel. The EX60 EV is the first car to use SSAB Zero Steel, which the steel maker says is a “breakthrough steel made from recycled scrap using fossil-free electricity and biogas”. Volvo says the EX60 has the “the lowest carbon footprint of any fully electric Volvo car to date”.
Steel is an important way automakers are reducing their lifecycle emissions and marketing their EVs. Last month, Mercedes Benz revealed how carbon reduction measures for the supply chain, including using low-carbon steel, enabled the company’s all-new electric GLC to achieve a two-thirds reduction in carbon emissions across its entire lifecycle compared to the current combustion-powered GLC. Mercedes stated that the GLC EV uses “around 36 kg of steel from electric arc furnaces, which are manufactured using electricity from renewable energy sources”.
According to the latest Lead the Charge Auto Supply Chain リーダーボード, released last month, demand for clean steel is growing among automakers with some now beginning to use the product as a way to differentiate their EVs from those of their competitors to secure customers.
Evidence from public opinion polls indicates a consumer appetite for electric vehicles made with more sustainable materials with many even willing to pay a premium— which is helping to drive moves by automakers to entice customers with new EV models made with clean steel.
One U.S. poll by Industrious Labs conducted last year shows 79% of EV drivers surveyed said they were interested in buying vehicles made with clean steel, with 84% of this subset willing to pay more for it. Annual polling by Plug In America shows EV owners consistently cite “clean air/environmental protection” as their most important purchase consideration. This is a market dynamic that is especially pronounced for EVs (broader polling of all vehicle owners shows that environmental benefits sit near the bottom of priorities when making purchasing decisions), which explains why companies like Renault and Volvo are prioritizing green steel for their EV models specifically.
Matthew Groch, Senior Director at Mighty Earth
“The growing demand for clean steel from automakers is sending a clear and unmistakable signal to steel producers and their investors: the market for green steel is real, accelerating, and set to expand alongside the rapid rise in EV sales. Forward-looking steelmakers have a clear opening to lead, innovate, and capture this growing demand if they act now.”
Maricela Gutierrez, Senior Campaign Strategist at Industrious Labs
“Our polling shows strong consumer demand and willingness to pay for EVs made with clean steel. With Renault now putting clean steel into its EVs, and Volvo the first automaker to use SSAB Zero Steel, that consumer demand is clearly having an effect and these automakers are capitalising on being first movers. Forward-thinking steelmakers need to heed the call of their automotive consumers and start meeting that demand by delivering affordable zero-emissions steel.”
