Steel Markets

BMW to Source Low-Carbon Steel from SDI and Big River Steel

Written by Becca Moczygemba

The BMW Group is taking another step in its initiative to achieve its decarbonization goal. The German automaker announced CO2-reduced steel supply agreements with Steel Dynamics Inc. and US Steel’s Big River Steel on Nov. 15.

auto“Steel is one of the main sources of CO2 emissions in our supply chain. That is why we are comprehensively reorganising our steel portfolio – so we can supply our global production network with over one third of CO2-reduced steel from 2026. This will reduce the carbon footprint of our supply chain by 900,000 metric tons per year, while at the same time driving the transformation of the steel industry,” said Joachim Post, member of the Board of Management of BMW AG.

You may recall BMW’s announcement regarding a partnership with Swedish steelmaking start-up H2 Green Steel (H2GS). Similarly, the agreements with SDI and Big River require the US mills to utilize renewable energy resources in their steel production, as “around 20% of supply chain CO2 emissions for a mid-sized fully electric vehicle are attributable to steel,” BMW noted in a press release.

Steel produced by the two US steelmakers will be used to create car bodies at BMW Group plants in Spartanburg, S.C., and San Luis Potosi, Mexico.

By Becca Moczygemba,

Becca Moczygemba

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