World’s leading automaker BMW Group is systematically pursuing its climate goals for the supplier network and significantly reducing the carbon footprint of its steel sourcing. Following initial contracts with European suppliers, the BMW Group has now concluded further agreements for the supply of CO2-reduced steel in the US and China. This will reduce the carbon footprint of supply chain by 900,000 tonnes per year, while at the same time driving the transformation of the steel industryFor the Americas region, agreements have already been reached with domestic steel producers Steel Dynamics and Big River Steel, a US Steel facility, to use renewable energy sources in their local steel production. In the US and Mexico, about half of the BMW Group’s flat steel requirements are supplied by the electric arc furnace steelmaking process. The CO2-reduced steel is then used at BMW Group Plants Spartanburg and San Luis Potosí to create car bodies for BMW vehicles. Due to its material properties, steel from electric arc furnaces is particularly suitable for use in structural components such as the underbody.In China, the BMW Group already signed an agreement in August with steel manufacturer HBIS Group, which will supply the BMW Group plants in Shenyang with CO2-reduced steel from 2023. The HBIS Group is gradually transitioning to a hydrogen-based method in combination with electric arc furnace steelmaking to enable further CO2 savings from 2026. The BMW Group will be the first automotive manufacturer in China to use CO2-reduced steel from the HBIS Group in series production.The BMW Group has signed an agreement with Salzgitter AG for delivery of lower-CO2 steel. The plan is to use the steel in series production of cars at the BMW Group’s European plants from 2026 onwards. The BMW Group already signed an agreement with Swedish startup H2 Green Steel in October of last year. The company will supply the BMW Group’s European plants with steel produced exclusively using hydrogen and electricity from renewable energies.
World’s leading automaker BMW Group is systematically pursuing its climate goals for the supplier network and significantly reducing the carbon footprint of its steel sourcing. Following initial contracts with European suppliers, the BMW Group has now concluded further agreements for the supply of CO2-reduced steel in the US and China. This will reduce the carbon footprint of supply chain by 900,000 tonnes per year, while at the same time driving the transformation of the steel industryFor the Americas region, agreements have already been reached with domestic steel producers Steel Dynamics and Big River Steel, a US Steel facility, to use renewable energy sources in their local steel production. In the US and Mexico, about half of the BMW Group’s flat steel requirements are supplied by the electric arc furnace steelmaking process. The CO2-reduced steel is then used at BMW Group Plants Spartanburg and San Luis Potosí to create car bodies for BMW vehicles. Due to its material properties, steel from electric arc furnaces is particularly suitable for use in structural components such as the underbody.In China, the BMW Group already signed an agreement in August with steel manufacturer HBIS Group, which will supply the BMW Group plants in Shenyang with CO2-reduced steel from 2023. The HBIS Group is gradually transitioning to a hydrogen-based method in combination with electric arc furnace steelmaking to enable further CO2 savings from 2026. The BMW Group will be the first automotive manufacturer in China to use CO2-reduced steel from the HBIS Group in series production.The BMW Group has signed an agreement with Salzgitter AG for delivery of lower-CO2 steel. The plan is to use the steel in series production of cars at the BMW Group’s European plants from 2026 onwards. The BMW Group already signed an agreement with Swedish startup H2 Green Steel in October of last year. The company will supply the BMW Group’s European plants with steel produced exclusively using hydrogen and electricity from renewable energies.
