China’s second largest state owned steel maker HBIS Group & global auto giant BMW Group have signed Memorandum of Cooperation on Building Green Low Carbon Steel Supply Chain in Shenyang in China. Both sides have agreed to carry out comprehensive and long-term cooperation in sustainable development and jointly build a green low carbon steel supply chain. Going forward, the two sides will work together to create a model of cooperation featuring Deep Integration and Green Development of industrial chains, and provide better solutions to global climate change and make greater contributions.According to the MoU, the two sides will jointly build the supply chain of green low carbon steel materials, develop low-carbon and green automotive steel materials and complete relevant certification based on the research and development and use of green and low carbon steel materials and BMW's low-carbon base on steel materials. From mid-2023, BMW's Shenyang production base will gradually use the HBIS low-carbon automotive steel for its mass-produced models. These low carbon steels produce 10-30% less CO2 than conventional steels. From 2026, BMW Shenyang production base will start to use low carbon steels in the mass production process of whole vehicles. Based on processes such as green electricity and electric furnaces, the production of low carbon steels will gradually reduce CO2 emissions by 95%. Under the current procurement plan, CO2 emissions are expected to be reduced by about 230,000 tonnes per year from 2026.HBIS and BMW will also jointly establish a docking and exchange mechanism, actively promote the integration of talent, strategy, management and culture, and maintain and develop their respective leading advantages in the industry. In the whole life cycle of automotive steel products, both sides will conduct periodic evaluation of carbon emission data in a fully transparent manner, including from iron ore mining to steel products in HBIS subsidiaries, and from automotive steel to car scrapping in BMW Brilliance, these carbon emission data will be recorded one by one. The two sides will actively carry out research, development and application of carbon negative technologies such as clean energy, and commit to the development of carbon neutral automotive steel.HBIS subsidiaries, Zhangxuan Tech took the lead in launching the world's first 1.2 million tonnes hydrogen metallurgy demonstration project. Tangsteel New District and Shigsteel New District are models of green transformation, whose contribute to the comprehensive realization of green, low carbon and sustainable development of the steel industry in China and even the world.The steel used to make a mid-size Battery Electric Vehicle is estimated to account for about 20% of the carbon emissions at the end of the vehicle's supply chains, second only to high-voltage batteries 26% and light metals 23%. Therefore, the production and use of green steel is one of the effective levers to reduce CO2 emissions in the whole life cycle of vehicles.