BMW increases use of low-carbon steel in series car production

German luxury automobile major BMW claims to have been able to increase the use of low-carbon steel in series vehicle production across its European plants. The auto major claims that this move comes as part of the group's aim to reduce CO2 emissions in its supplier network, as the auto company plans to achieve sustainability.

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Steel production heavily relies on natural gas usage. These include fossil resources such as coal. BMW AG aims to reduce the use of that and increase the use of greener power like hydrogen. The automobile group has already signed an agreement with Salzgitter AG for low-carbon steel. This steel will be used in the standard car production at the BMW Group’s European plants from 2026 onwards.

With this move, the BMW Group is expanding its sourcing of low-carbon steel to two suppliers. The company aims to use low-carbon steel to meet over 40 per cent of demand at its European plants by 2030, thereby reducing CO2 emissions by up to 400,000 tonnes per year.

Joachim Post, a member of the board of management of BMW AG responsible for purchasing and supplier network, said that it is an important step in substantially reducing CO2 emissions at source in the supplier network.

“Our aim is to reduce vehicles’ lifecycle carbon footprint with a holistic approach. With steel, in particular, we are leading the way by sourcing low-carbon steel for our plants in Europe in the future," he also added.

Agreements with two suppliers on low-carbon steel will meet over 40% of steel demand at European plants

The BMW Group already signed an agreement with Swedish startup H2 Green Steel in October of last year. H2 Green Steel will supply the BMW Group’s European plants with steel produced exclusively using hydrogen and green power from renewable energies from 2025 onwards. This process will reduce CO2 emissions by around 95%.

Together, the two agreements will supply over 40% of the steel required by the company’s European plants and save around 400,000 tonnes of CO2 emissions per year. BMW Group press plants in Europe process more than half a million tonnes of steel per year.

Due to its energy-intensive manufacturing process, steel production generates high CO2 emissions. Steel, on the other hand, is one of the most important materials for car production and accounts for a large proportion of the body and many components.