The BMW Group continues to reduce CO2 emissions in its supplier network as part of its ambitious ongoing sustainability activities. Steel produced using natural gas or hydrogen and green power, instead of fossil resources like coal, makes a vital contribution to this.
The BMW Group has now signed a corresponding agreement with Salzgitter AG for the delivery of low-carbon steel. New agreement with Salzgitter AG will provide for delivery of low-carbon steel starting 2026.
BMW Group expands sourcing of low-carbon steel to two suppliers, meeting up to 40% of steel demand at European plants. As a result, CO2 emissions savings will sore up to 400,000 tons per year. Meanwhile, steel remnants from BMW Group plants will be reused in established circular economy.
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The Agreement
“This is an important step in substantially reducing CO2 emissions at source in the supplier network,” said Joachim Post, member of the Board of Management of BMW AG responsible for Purchasing and 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.”
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.
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“Salzgitter AG is putting ‘circularity’ at the centre of its new strategy,” said Gunnar Groebler, CEO of Salzgitter AG.
“We firmly believe that closed loops of recoverable materials can only realize their full effect with strong partners. We are delighted about the circular economy cooperation with the BMW Group and the agreement to supply green steel to our long-standing customer. Partnering for Transformation – this is how we will translate our new corporate vision into practice.”
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