Volkswagen Group and Thyssenkrupp Steel have signed a Memorandum of Understanding (MoU) at the International Suppliers Fair (IZB) in Wolfsburg, Germany, to supply low-carbon steel from Thyssenkrupp Steel’s forthcoming direct reduction plant. This partnership marks a crucial step in the companies’ shared commitment to sustainability and climate protection, aiming to reduce CO₂ emissions throughout Volkswagen’s supply chain and bolster its efforts toward carbon neutrality by 2050.
The future direct reduction plant, set to commence operations in 2027, will initially use natural gas, gradually transitioning to hydrogen as the primary reducing agent. This shift will enable Thyssenkrupp Steel to produce bluemint® Steel, significantly reducing the carbon footprint of steel production. Volkswagen plans to incorporate this low-carbon steel into its production processes starting in 2028, with gradual scaling to meet its full range of requirements.
Dirk Große-Loheide, Volkswagen’s Board Member for Procurement, highlighted the significance of this collaboration, stating, “Decarbonizing supply chains is a decisive factor for the Volkswagen Group on the road to carbon neutrality. Using low-carbon steel is an important step in making supply chains at Volkswagen Group even more environmentally friendly going forward.”
Dennis Grimm, Spokesman of the Executive Board of Thyssenkrupp Steel, underscored the strategic nature of this alliance, saying, “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.”
The initiative aligns with Volkswagen’s broader green steel strategy, which includes existing partnerships with Salzgitter AG and H2 Green Steel. This agreement with Thyssenkrupp Steel will support Volkswagen’s efforts to cut CO₂ emissions, especially within the production of electric vehicles, where steel constitutes 15-20% of total emissions. The use of low-carbon steel is crucial in manufacturing lightweight vehicle structures and efficient electric drive systems, reflecting the increasing importance of steel in electromobility.
With the adoption of bluemint® Steel and other similar initiatives, Volkswagen is positioning itself as a leader in the use of sustainable materials in the automotive industry. The collaboration aims to drive forward innovation and sustainability, setting a new standard for green production practices in the automotive sector.
