Mercedes-Benz Furthers its Journey to Green Steel

Using Green Steel as Early as 2025 

Constantly working to reduce its CO2 emissions and the emissions of its suppliers in the steel supply chain, Mercedes-Benz is committed to responsible steel supply.

To this end, Mercedes -Benz has made another key step to achieve its green steel goals by partnering with SSAB - a Swedish steel manufacturer. 

Together the two companies aim to introduce green steel into the vehicles as quickly as possible, with the first prototypes for body shells made of CO2 free steel planned for next year. 

The Production of Green Steel 

SSAB relies on hydrogen made from water and fossil-free energy instead of coking coal. Hydrogen is used to reduce iron oxide to crude iron; a crucial step to complete the green steel value chain with virtually no CO2 emissions. 

Currently, there is already a pilot plant for fossil-free steel operating. By 2026, SSAB plans to supply the market with fossil-free steel on an industrial scale. 

Mercedes-Benz and Its Efforts to be Green 

Taking every opportunity to reduce emissions quickly and sustainably, Mercedes-Benz expects to be ready to go all-electric in every location where market conditions allow. 

Transitioning from ‘electric first’ to ‘electric only’, Mercedes-Benz aims to accelerate the transformation to an emissions-free and software-driven future. 

By 2039 (at the latest), Mercedes-Benz’s will transform its new passenger car fleet to become CO2 neutral along with its entire value chain, including the supplier network.

Alongside its goal of a green steel supply chain, Mercedes-Benz is deliberately focusing on avoiding and reducing CO2 emissions instead of compensation. 

Mercedes-Benz’s latest partnership with SSAB is another important step towards its plans to accelerate the development and production of green steel in Europe. 

Previous Green-Steel Efforts Made By Mercedes-Benz

May 2021, Mercedes-Benz took an equity stake in Swedish start-up H2 Green Steel (H2GS) as a way to introduce CO2 free steel into series production.

"With an equity stake in H2 Green Steel, Mercedes-Benz is sending an important signal to accelerate change in the steel industry and increase the availability of carbon-free steel. As a first step, we are investing a single-digit million amount. As a preferred partner of the start-up, we will be launching green steel in various vehicle models as early as 2025," said Markus Schäfer, Member of the Board of Management of Daimler AG and Mercedes-Benz AG; responsible for Daimler Group Research and Mercedes-Benz Cars COO.

July 2021, Mercedes-Benz honoured its steel supplier Big River Steel for its exceptionally sustainable production of steel. The company uses recycled steel scrap and renewable energy to reduce the CO2 emissions for Mercedes-Benz products by more than 70% compared to the traditional blast furnace method. 

"We are well on track for executing our sustainable business strategy. In close cooperation with our suppliers, we sharpened our focus on sustainability along the entire supply chain. Together we want to keep exceeding the expectations of our customers by taking technology, quality, and sustainability to a new level,” said Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG.