The agreement underlines the joint commitment of both companies to sustainability and climate protection and represents a further milestone in their long-standing partnership.
thyssenkrupp Steel’s direct reduction plant, which is scheduled to go into operation in 2027, will be powered by hydrogen and green electricity, enabling a significantly reducedcarbon footprint compared to conventional steel production. The plant will initially be ramped up using natural gas as a reducing agent and will gradually be converted to hydrogen. The resulting product, bluemint® Steel, will be certified according to recognized standards and can achieve the LESS label A when operated with 100% regeneratively produced hydrogen. This classification, which was developed by the German Steel Federation flanked by the German Federal Ministry of Economics and Climate Protection, provides a complete picture of the climate impact of a steel product and documents its virtually emission-free production.
“The signing of the Memorandum of Understanding marks a decisive step on our path to decarbonizing key industrial processes in Germany. Our long-standing partnership with Volkswagen Group shows that, in addition to technical development work, we can also take big steps towards a sustainable future together,” says Dennis Grimm, CEO of thyssenkrupp Steel.
Benefits for the automotive industry
Volkswagen Group can benefit considerably from this innovative process forCO2 avoidance, as steel accounts for 15-20 percent of the emissions from an electric vehicle. The decarbonization concept also enables the production of the entire product portfolio in the usual specification and premium quality. TheCO2-reduced steel helps the car manufacturer to reduceCO2 emissions in the Scope 3 category and thus make an important contribution to achieving its own climate targets. Deliveries are to begin in 2028 and then be gradually expanded.
“The decarbonization of the supply chains is a decisive factor for the Volkswagen Group on the way toCO2 neutrality. We want to achieve this goal by 2050 at the latest. The use of green steel is an important step in making Volkswagen’s supply chains even more environmentally friendly in the future. This MoU with thyssenkrupp is an important building block in our strategic orientation towards the use of CO2-reduced steel,” says Dirk Große-Loheide, Board Member for Procurement of the Volkswagen Passenger Cars brand and member of the Extended Group Management Board of Volkswagen AG.
Innovative steel solutions for mobility
Steel is the basic material for mobility and the preferred material for vehicle production. On average, 1,000 kilograms of steel are required per vehicle – for a wide variety of applications. Volkswagen Group and thyssenkrupp Steel have a long-standing partnership, particularly in the field of innovative and economical lightweight construction solutions, for example in the introduction of high-strength steels, which are indispensable above all for safety reasons. Steel-dominated lightweight construction now accounts for over 80 percent of vehicle components. This lightweight material concept also includes hot-forming steels, which enable maximum strength combined with low weight. This is crucial for safety-relevant structures such as A and B pillars or bumpers.
The collaboration between the two companies is increasingly expanding its focus to the field of electromobility. This includes economical lightweight construction solutions for highly stable vehicle structures and electrical steel for efficient electric drives. Steel solutions play a central role in the mobility transition, not only as a material for generators and electric motors, but also as the preferred material for body construction and other structural components of electric vehicles. In the course of electromobility, steel is also becoming increasingly important as more steel has to be used in electric vehicles than in combustion vehicles due to the increased requirements resulting from the large battery unit. By combining material expertise and application knowledge, thyssenkrupp Steel is positioning itself as an important player in the further development of electromobility.
The partnership between thyssenkrupp Steel and Volkswagen Group contributes to the mobility turnaround with the planned cooperation on CO2-reduced steels. It shows how innovative technologies and strategic cooperation can create sustainable solutions.
