Mercedes-Benz has marked a crucial milestone towards the decarbonisation of its global steel supply chain. The German automobile giant has signed an agreement with Steel Dynamics, one of the largest domestic steel producers in the United States, to source more than 50,000 tons of CO₂-reduced steel per year for its plant in Tuscaloosa, Alabama.
As the company explains in the statement, SDI steel will be manufactured using an electric arc furnace (EAF) and will use electricity from 100% renewable sources. With EAFs powered by green electricity, emissions can be reduced by more than half, up to 1.0 tonnes of CO₂ per tonne of steel on average, compared to primary steel production using blast furnaces and core furnaces. oxygen. With this, SDI and Mercedes-Benz, which have been working together since 2015, take another step towards reducing emissions in the steel supply chain.
SDI flat-rolled steel made from 70% or more recycled scrap is used in all Mercedes-Benz models built in Tuscaloosa, including the EQS SUV and EQE SUV. Both sides agreed to potentially increase the proportion of scrap metal in the near future, which would further reduce the carbon footprint. SDI’s CO₂-reduced steel will be introduced into series production at the Tuscaloosa plant starting in September 2023.
In line with the German group’s local-by-local approach, the US supply deal is part of a global effort to “decarbonize Mercedes-Benz’s steel supply chain” and follows several agreements on CO₂-reduced procurement. and CO₂ free case. steel in Europe.
Goal 2039
“Our ambition is clear: together with our partners we want our entire fleet of new vehicles to be net carbon neutral along the entire value chain by 2039. Following this strategy, our agreement with SDI to acquire more than 5,000 tons steel with reduced CO2 emissions annually is another important milestone in establishing a sustainable steel supply chain in North America,” explains Gunnar Güthenke, Head of Procurement and Supplier Quality at Mercedes-Benz Cars.
In addition to constantly reducing CO₂ emissions, the company is committed to responsible sourcing of steel, calculating on recognized standards and strong certificates. Mercedes-Benz is a member of the Responsible Steel Initiative and is actively involved in the development of a certifiable sustainability standard for the steel industry. The objective is to guarantee environmentally compatible and socially acceptable steel production throughout the entire value chain.
