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 delivery of low-carbon steel. The steel will be used in standard production of cars 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 aim is to use low-carbon steel to meet over 40% of demand at its European plants by 2030, thereby reducing CO2 emissions by up to 400,000 tonnes per year.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.The BMW Group already established a closed-loop material cycle for sheet steel waste from BMW Group Plant Leipzig with Salzgitter AG more than five years ago. After delivering steel coils to the plant, Salzgitter AG takes away steel remnants of the kind produced at press plants, for example, when doors are punched out, and uses this material to produce new steel. This steel is then supplied to the BMW Group plants. In this way, raw materials can be used multiple times in a circular economy, thereby conserving natural resources. Sheet steel waste from the BMW Group’s other European plants is also either reused through a direct material cycle or sent back to the steel producer via steel traders and processed into new steel.