The BMW Group continues to reduce CO2 emissions in its supplier network as part of its ambitious sustainable development activities.
Steel produced using natural gas or hydrogen and green energy, instead of fossil resources such as coal, has a vital contribution to this. The BMW Group has now signed an agreement with Salzgitter AG for the delivery of low-carbon steel.
The new agreement with Salzgitter AG provides for the delivery of low-carbon steel from 2026
Steel will be used in standard car production at the BMW Group’s European plants starting in 2026. Through this partnership, the BMW Group is expanding its supply of low-carbon steel to two suppliers. The aim is to use low-carbon steel to cover more than 40% of its European plant demand by 2030, reducing CO2 emissions by up to 400,000 tonnes per year.
In addition to the supply of low-carbon steel, the BMW Group has also invested in an innovative carbon-free steel production method developed by the start-up company. Boston Metal, through its BMW i Ventures investment fund.
Boston Metal uses electricity for its new technology, which, through an electrolysis cell, produces molten iron which is later transformed into steel. If renewable energy is used for this process, then steel production is carbon-free. In the coming years, Boston Metal plans to expand the new method of industrial steel production.
Through its investment in start-up companies, the BMW Group aims to accelerate the development of new technologies, to promote competition and provide a boost that will make it easier for young companies to enter the market. Innovative technologies provide better, more sustainable and more efficient access to raw materials.
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