Mercedes-Benz has entered into an agreement with U.S.-based steel producer Steel Dynamics (SDI) to supply more than 50,000 tonnes of CO2-reduced steel annually for its plant in Tuscaloosa, Alabama. The CO2-reduced steel will be introduced into series production at the plant as early as this month.
Steel Dynamics uses electric arc furnace (EAF) technology to produce steel, which relies on recycled ferrous scrap as the primary raw material and does not require smelting of virgin iron ore or burning coal, resulting in substantially lower carbon emissions and energy intensity compared to traditional blast furnace steelmaking. The steel supplied by SDI will use electricity from 100% renewable sources, further reducing emissions.
Mercedes-Benz’s Tuscaloosa plant manufactures SUV models, including the GLE, GLE coupé, GLS, EQS SUV, and EQE. Currently, all models produced at the plant use SDI flat-rolled steel made with 70% or greater recycled scrap content. The companies have also agreed to potentially increase the share of scrap in the near future, further reducing the carbon footprint.
Mercedes-Benz has set a goal to achieve a green steel supply chain by 2039 at the latest, as part of its broader environmental, social, and governance (ESG) initiatives. This includes a target to achieve an 80% reduction in CO2 emissions from production by 2030.
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