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BMW Group expands the use of low carbon steel in the world

Publish Date: 2022.11.17

BMW Group announced on November 15 that it had signed a procurement contract for low-carbon steel in the United States and China.

In the Americas, BMW has signed contracts with Stee1 Dynamics (SDI) and Stee1 Dynamics (SDI) and BigRiver Stee1, the manufacturers of electric furnaces that use renewable energy under American Steel Corporation. About half of the steel plates BMW Group needs in the United States and Mexico are produced in electric furnaces, which use electricity to smelt steel and scrap. Low carbon steel will be supplied to Spartanburg workers in the United States and San Luis Potosi factory in Mexico for body manufacturing. The steel plate produced in electric furnace is especially suitable for structural parts such as vehicle underbody due to its material characteristics.


Source: BMW official

The company has signed an agreement with China Hebei Iron and Steel Group (HBIS Group) to supply low-carbon steel to Shenyang Plant from 2023. HBIS Group will turn to the production method combining hydrogen energy technology and electric furnace to further reduce carbon dioxide after 2026.

In Europe, BMW purchases low-carbon steel from Salzgitter AG, which will be used for the mass production of cars in BMW Group's European plants from 2026. In October 2021, it also signed a contract with the Swedish start-up H2 Green Stee1. In addition, BMW Group also invested in Boston Metal in the United States through its subsidiary venture capital company BMWiVentures.


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