Mercedes-Benz Secures Sustainable Steel for Alabama Plant - Smart Energy Decisions

Energy Efficiency, GHG Emissions, Industrial, Industrial  -  September 20, 2023

Mercedes-Benz Secures Sustainable Steel for Alabama Plant

Mercedes-Benz signed an agreement to source over 50,000 tons of CO2-reduced steel annually for its plant in Tuscaloosa, Alabama.

The company signed the agreement with Steel Dynamics (SDI), and the steel will be made with an electric arc furnace (EAF) using electricity from 100% renewable sources. With EAFs power by green electricity, emissions can be reduced by more than half on average compared to primary steel production, which uses blast furnaces and basic oxygen furnaces. 

SDI flat-rolled steel that is 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. Both companies agreed to potentially increase the share of scrap in the near future, which would reduce the carbon footprint more. 

The CO2-reduced steel from SDI will be introduced into series production at the Tuscaloosa plant as soon as September 2023.

The Mercedes-Benz steel supply chain includes several agreements on the procurement of CO2-reduced and almost CO2-free steel in Europe.

“Our ambition is clear: Together with our partners we want to make our entire fleet of new vehicles net carbon-neutral along the entire value chain by 2039,” said Dr. Gunnar Güthenke, Head of Procurement & Supplier Quality for Mercedes-Benz Cars, in a statement. “Following this strategy our agreement with SDI to procure more than 50,000 tons CO2-reduced steel annually is another important milestone to establish a sustainable steel supply chain in North America.”

Keywords: Mercedes-Benz

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