Skip to content
发布日期

Car makers are ramping up contracts to buy green steel and setting targets to make the switch to near zero-emission steel technologies, according to a new global rating by the International Council on Clean Transportation. The analysis also reveals that progress on battery recycling and repurposing is being made by a range of automakers across different markets.

The data shows that green steel and battery recycling are important elements of strong electric vehicle business models, said Lead the Charge, a network of groups pushing for low carbon technology, responsible mineral sourcing and human rights in car supply chains.

Mercedes-Benz, BMW, Ford, VW, GM, Geely (through its subsidiary Volvo Cars) and Chery have all signed purchase agreements to buy near-zero and low carbon emission steel. This includes agreements between Mercedes-Benz and Stegra and Steel Dynamics for the supply of 100,000 tonnes of near zero emission steel. VW has signed five agreements to buy zero or low emissions steel, including with Stegra, which add up to approximately 5.5% of the steel used by VW in 2024.

Demand for green steel is expected to grow given the targets some leading car makers have made, including Mercedes-Benz, BMW, Ford, VW, GM and Geely’s Volvo subsidiary. These targets include Volvo’s commitment to 50% lower emission steel by 2030 and BMW’s plans to use low-carbon steel for over 40% of its demand at European plants by 2030.

Concerningly, 15 of the 21 car makers assessed do not set targets for green steel, and 14 have not signed contracts to buy low carbon steel. Hyundai, the only car maker which makes its own steelmaking subsidiary, is among them, though it announced this year it would build a $5.8 billion integrated steel plant in Louisiana using a gas powered DRI furnace with electric arc furnaces.

On battery recycling and repurposing, Tesla, Great Wall, BYD, Stellantis, and Geely came out on top, showing how this issue can be integrated into car makers’ business models. In the dominant markets where they operate, these five companies operate in-house recycling facilities and have important partnerships with subsidiaries and battery recycling, repurposing and storage companies.

Other car makers showing progress on battery recycling and repurposing include Jaguar Land Rover, which has expanded recycling to China through its joint venture with Chery and additional investments in battery recycling. Toyota also began expanding its battery recycling and repurposing effort in China and maintains recycling and repurposing in Japan, as well as a partnership with Redwood Materials in the United States. Renault, SAIC, and GM rate well on batteries because of recycling and repurposing in their main markets.

Other companies announced important investments in battery recycling technologies and processes, although many fail to disclose important details about these investments. BMW and Mercedes have announced battery recycling and repurposing expansions to China and the United States, in addition to operating in-house recycling and repurposing facilities in Europe. VW announced a new  partnership with Huayou Recycling to start repurposing batteries for energy storage systems in China and Chery signed a cooperation agreement for battery recycling with Guanghua Technology.

Quotes from Lead the Charge network:

Julia Poliscanova, Senior Director for Vehicles & Emobility Supply Chains at T&E:

“As vehicles electrify and become zero emissions, attention is turning to making them with clean and recycled materials. Battery recycling is starting to take off globally, but Europe is in danger of being left behind. Where European carmakers have announced recycling investments, many of these are destined for China or elsewhere. This is setting Europe up for a greater dependency on imported raw materials, as it will be sending its used batteries to be recycled elsewhere. The EU and the UK need to put in place industrial policies to scale recycling factories locally.”

Roger Smith, Asia Lead at SteelWatch:

“The increasing appetite for near-zero emission steel among automakers is not a boutique development, but a bright flashing LED sign for steelmakers that they will have to rapidly transform to remain relevant and competitive,” said Roger Smith, Asia Lead at SteelWatch. “Steelmakers still using coal-based production methods will be servicing shrinking markets far sooner than they think, and we expect those that fail to get on a 1.5C trajectory will fade into obscurity.”

Matthew Groch, Senior Director at Mighty Earth:

“Green steel and battery recycling are becoming key litmus tests of whether car companies are serious about a clean transition. While some companies are making real progress, most are still using greenwashing to mask their inaction. Automakers can’t claim to be leaders on sustainability while relying on fossil-fueled steel and vague recycling promises.”

Background: Lead the Charge issues an annual ranking of 18 global automakers based on their efforts to build equitable, sustainable, and fossil-free supply chains as they transition to electric vehicles. This year’s analysis shows Hyundai has failed to improve steel and aluminum decarbonization and saw a major drop on workers’ rights.