Volkswagen Group has signed a memorandum of understanding (MoU) with Thyssenkrupp Steel at the International Suppliers Fair (IZB) in Wolfsburg, Germany for to supply of low-carbon steel.

This collaboration is set to begin in 2028, with steel supplied from Thyssenkrupp's upcoming direct reduction plant, which promises a substantial reduction in carbon emissions.

Thyssenkrupp's direct reduction plant, expected to be operational from 2027, will utilise hydrogen and green electricity to produce bluemint Steel.

Thyssenkrupp Steel executive board spokesman Dennis Grimm said: “Signing this memorandum of understanding marks an important step on our path to decarbonising key industrial processes in Germany.”

“Our long-standing partnership with Volkswagen Group demonstrates that, alongside our technical development work, we can also collaborate in making great strides toward a sustainable future.”

Initially, natural gas will be used in the ramp-up phase, transitioning to hydrogen to further decrease the carbon footprint.

The bluemint Steel will be certified to recognised standards and may achieve the LESS Label A for near-zero emissions if renewable hydrogen is used.

The partnership extends to developing economical lightweight solutions for stable vehicle structures and electrical steel for electric drive systems.

This initiative is part of Volkswagen's broader efforts to incorporate green steel into its production processes.

Volkswagen stands to benefit from this agreement as it could significantly reduce the carbon emissions associated with the steel in its electric vehicles, which currently represent 15% to 20% of the total vehicle emissions.

Dirk Gro?e-Loheide, Member of the Board of Management of the Volkswagen Brand responsible for Procurement, said: “Decarbonising supply chains is a decisive factor for the Volkswagen Group on the road to carbon neutrality.

“We want to achieve this goal by 2050 at the latest, and using low-carbon steel is an important step in making supply chains at Volkswagen Group even more environmentally friendly going forward.

“This MoU with Thyssenkrupp is an important building block in our strategic focus on the use of low-carbon steel.”

"Volkswagen finalises low-carbon steel supply agreement" was originally created and published by Just Auto, a GlobalData owned brand.

 

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