Mercedes-Benz working on green steel supply chain with key partners

Mercedes-Benz working on green steel supply chain with key partners
Mercedes-Benz is the first car manufacturer to take an equity stake in the start-up H2 Green Steel.

Mercedes-Benz is getting ready to go all electric by the end of the decade, where market conditions allow. Shifting from electric-first to electric-only, the luxury car company is accelerating toward an emissions-free and software-driven future.

By 2022, Mercedes-Benz will have battery electric vehicles (BEV) in all segments the company serves. From 2025 onwards, all newly launched vehicle architectures will be electric-only and customers will be able to choose an all-electric alternative for every model the company makes. Mercedes-Benz intends to manage this accelerated transformation while sticking to its profitability targets.

Together for climate protection

With Ambition 2039 Mercedes-Benz wants to offer a CO₂ neutral new car fleet in less than 20 years. The transformation to electric mobility in particular increases the energy demand in the supply chain.

The company’s suppliers are also part of its holistic approach to climate protection. It wants to implement effective climate protection measures together with its partners in the supply chain. The starting point is the creation of transparency. To this end, it is working with organizations such as CDP in the car sector to assess the environmental impact of our supply chain.

Mercedes-Benz additionally focusses on materials and components that are particularly CO2 intensive in manufacturing and processing. Focus components include battery cells, steel, and aluminium.

Here, it has already reached some important milestones: It has made CO2 neutral cell production a key requirement for all its battery cell partners. This reduces emissions in battery production by around 30%. Its flagship EQS is already the first vehicle to be equipped with them. The CO2 neutral production at the partners’ premises has also been verified and confirmed by the expert and testing organizations SGS and DEKRA.

Together with its suppliers, Mercedes-Benz  is also working on a green, CO2 free steel supply chain.

It sources steel from Salzgitter AG and Big River Steel with a significantly reduced carbon footprint by the use of recycled steel scrap.

In the future, Mercedes-Benz will source steel from virtually CO2-free production, thanks to the switch to new technologies. To this end, Mercedes-Benz is the first car manufacturer to take an equity stake in the start-up H2 Green Steel and has entered into a partnership with the Swedish steel producer SSAB.

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