Steel Dynamics Inc. (SDI) and Mercedes-Benz have signed an agreement for the automaker to source 50,000 metric tons of C02-reduced steel for its plant in Tuscaloosa, Ala.
SDI’s flat-rolled steel made of 70% or greater recycled scrap content is being used in all Mercedes-Benz models built in Tuscaloosa, including the EQS SUV and EQE SUV, Mercedes said on Monday.
Both companies agreed to potentially increase the share of scrap in the near future, “which would reduce the carbon footprint even further,” the Germany-headquartered automaker said in a statement.
“In line with the company’s local-for-local approach, the supply agreement in the United States is part of a global effort to decarbonizing the Mercedes-Benz steel supply chain and follows several agreements on the procurement of CO2-reduced and almost CO2-free steel in Europe,” Mercedes added.
The Fort Wayne, Ind-based steelmaker’s product is made using electric-arc furnace (EAF) technology and “will use electricity from 100% renewable sources,” according to Mercedes.
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