Industry News & Progress
Mercedes and H2 Green Steel announce agreements in both Europe and North America
Mercedes-Benz and H2 Green Steel have signed a binding agreement for the delivery of about 50.000 tonnes of green steel to the car maker’s European production annually. In a pioneer move Mercedes-Benz has also signed a memorandum of understanding with H2 Green Steel for the potential supply of green steel produced in North America.
ArcelorMittal to supply recycled and renewably produced steel to General Motors
ArcelorMittal North America said on Tuesday the steelmaker will supply General Motors (GM.N) with recycled and renewably produced steel, which substantially lowers CO2 emissions.
Material will be supplied from ArcelorMittal Dofasco in Hamilton, Ontario and shipments are expected to begin in the second quarter of 2023, the company said. The terms of the deal were not disclosed.
Mercedes announces new supply chain goals, including steel, aluminum, battery recycling, and human rights risk assessment
At Mercedes annual ESG Conference 2023, Mercedes announced further supply chain priorities, plans, and investments across several areas.
Mercedes set “the goal of a green steel supply chain from 2039 at the latest,” including “low-CO2” steel from scrap already part of their vehicles, further details on their partnerships with H2 Green Steel and SSAB, including prototyping parts that contain “almost fossil-free direct-reduced iron,” and their intention to launch models from 2025 that use “almost CO2-free” steel. Like BMW, Mercedes also stated they see themselves as “promoting the transformation of the steel industry.”
Regarding aluminum, Mercedes stated they are working on decarbonization, however did not provide specific targets or milestones. They did state that “a third of the aluminium used in Europe” for EVs will be made with renewable energy, and that they are testing aluminum from Hydro with a minimum 25% scrap content, with the aim of it being incorporated into production this year. Each results in 50% and 70% lower CO2 emissions, respectively. Also with Hydro, Mercedes plans to pilot “very low CO2” aluminum by 2030.
Mercedes’ new battery recycling factory will increase their operations and achieve a recycling rate of more than 96%, with the potential to recycle “2,500 tonnes of battery modules per year.” They are also working with partners in China on recyclable materials. Additionally, Mercedes are aiming to reduce the CO2 footprint of battery cells by 40% with further emissions reductions’ possible with renewable energy to produce and refine raw materials.
Mercedes also shared further details on their timeline and milestones to assess 24 raw materials with elevated human rights risks: 70% by 2025 and completed by 2028. They also stated that this year, they plan to “establish risk mitigation measures for all raw materials affected by the future EU battery regulation.”
By 2026, more than one third of BMW’s steel will be “CO₂-reduced” + “CO₂-reduced” aluminum agreement
As part of their value chain-wide climate neutrality by 2050 goal, BMW stated their focus on CO₂-intensive materials, including aluminum and steel.
On steel, from 2026, more than one third of BMW’s steel worldwide will be “CO₂-reduced steel,” eliminating approximately 900,000 tonnes of CO₂ annually. They state that this is based on contracts with suppliers in Europe, China, and the US. BMW also noted that they see their efforts as “promoting the transformation of the steel industry.”
On aluminum, BMW have signed a declaration of intent with Rio Tinto in Canada for “significantly CO₂-reduced” aluminum from 2024. BMW states that compared to conventional methods, “the process avoids around 70% of CO₂ emissions.” This aluminum will be used exclusively in vehicle production at BMW’s Spartanburg plant in the US.
Hyundai Steel produces low-carbon, high-strength steel plates
Hyundai Steel says it has become the first steelmaker globally to produce high-strength steel plates by using an electric arc furnace, which helps reduce carbon emissions drastically during the whole process… part of the company’s carbon neutrality initiative, dubbed “Hy-Cube,” with a goal of switching completely to hydrogen-based steel production by 2030.
VW invests in resource-efficient battery design and signs agreements for “low CO2” steel and “environmentally-friendly”lithium
VW has taken a stake in 24M Technologies whose battery technology claims to require 40% less production area, is more efficient for recycling, and reduces the CO2 footprint of battery production. VW has also signed agreements for “low-CO2” steel from the end of 2025 with Salzgitter and for lithium with Vulcan Energy Resources. Their process claims to use less land, groundwater and energy.
Mercedes establishes multiple partnerships on steel, aluminum, and lithium with IRMA certification requirement
Mercedes will procure “low-carbon aluminum” from Norsk Hydro, launched a partnership with SSAB to “introduce fossil-free steel into vehicle production as early as possible,” their China operations (Beijing Benz Automotive, BBAC signed an MoU with Baosteel for reduced-emissions steel and, in the future, green steel, and signed a lithium supply agreement with Rock Tech Lithium Inc. that will include creating a roadmap to achieving “CO₂ neutral production” of lithium hydroxide by the end of 2030. It also requires that all lithium hydroxide shall be sourced from mining sites audited by the Initiative for Responsible Mining Assurances (IRMA). Mercedes also recognized an established supplier, Big River Steel, with a sustainability award.
Nissan to use “low-CO₂” steel and green aluminum
From January 2023, Nissan announced plans to use “low-CO₂” steel and green aluminum from Kobe Steel. Kobenable steel claims to significantly reduces CO2 emissions in the blast furnace process and is “the first time Kobenable Steel will be used in mass-produced vehicles.” They state that the aluminum will be made with solar power only and use recycled aluminum.
Pollution, child labour, workers’ rights violations and new coal-fired power plants in Hyundai-Kia’s supply chains
According to the Business and Human Rights Resource Centre, Hyundai-Kia’s supply chains have been linked to child labour and workers’ rights violations. Reports also implicate Hyundai-Kia’s supply chains with air pollution and premature deaths in South Korea and environmental contamination in Indonesia.
Hyundai Motor Company also signed an MoU to purchase aluminium from Adaro in Indonesia, which would be powered by new coal-fired power plants.
BMW signs agreements for low-carbon steel & aluminum in Europe, US and China
BMW has signed agreements with Salzgitter AG in Europe, Steel Dynamics (SDI) and Big River Steel in the U.S. and HBIS Group in China for low-carbon steel to be used in its production cycles. In February 2023, BMW also signed an agreement to source reduced CO2 aluminum from Rio Tinto for its US vehicle production.
Ford signs agreements for various “low-carbon” and “zero-carbon” metals, including steel
Ford has established agreements for “low carbon” steel, ”low-carbon” battery and other metals, and a program to help suppliers eliminate their emissions.