Mercedes-Benz, H2 Green Steel Ink Green deals
Mercedes-Benz Group
Mercedes-Benz and H2 Green Steel have entered into a solid agreement, securing the delivery of approximately 50,000 tonnes of eco-friendly steel to Mercedes-Benz's European manufacturing facilities on an annual basis.
Mercedes-Benz has also signed a memorandum of understanding with H2 Green Steel, exploring the potential supply of green steel from North America.
Having made early investments in H2 Green Steel, Mercedes-Benz has displayed its commitment to sustainable practices by confirming customer demand for green steel through a binding agreement.
This agreement has now been expanded to cover an annual volume of approximately 50,000 tonnes, which will be produced at H2 Green Steel's iron and steel plant in Boden, located in northern Sweden and powered by green hydrogen. By using responsibly produced high-quality steel, Mercedes-Benz takes another significant stride towards minimising the environmental impact of its car manufacturing operations.
Henrik Henriksson, CEO of H2 Green Steel, acknowledges the critical role played by pioneering companies like Mercedes-Benz in driving the transition within the steel industry to meet ambitious climate targets.
He emphasises the collaborative partnership with Mercedes-Benz, which enables both companies to set new benchmarks in terms of supply chain emissions, circularity, and social sustainability. The alliance with Mercedes-Benz is invaluable for H2 Green Steel, not only for its European operations but also for its expansion into the steel value chain in North America.
In addition to the sustainable production of green steel, Mercedes-Benz places great importance on circularity. The partnership between the two companies extends to the establishment of a closed-loop recycling system for scrap steel at the Boden plant. Furthermore, H2 Green Steel can leverage Mercedes-Benz's extensive knowledge and expertise in ensuring human rights in the supply chain.
Markus Schäfer, Member of the Board of Management of Mercedes-Benz Group AG and Chief Technology Officer for Development & Procurement, highlights the significance of the supply agreement, enabling the acquisition of nearly carbon-neutral steel, approximately 50,000 tonnes, from H2 Green Steel for Mercedes-Benz's manufacturing plants in Europe.
This collaboration propels the creation of a decarbonised, regional, and resilient steel supply chain while deepening the partnership's commitment to establishing a sustainable steel supply chain in North America. This development represents a significant stride towards enhancing the resilience and sustainability of the automotive industry.
Building upon their partnership in Europe, Mercedes-Benz and H2 Green Steel have also committed to collaborating on a long-term supply of green steel produced in North America for Mercedes-Benz's manufacturing facilities in both North and South America. By doing so, the companies aim to demonstrate the viability and value of a green steel supply chain.
Henrik Henriksson further explains the prospects of accessing a substantial supply of renewable electricity in Canada and the US, which can be used for the production of green hydrogen and green sponge iron, consequently fostering sustainable steel production. This opportunity aligns with H2 Green Steel's overarching objective to drive global decarbonisation across the steel value chain.
To view and compare company ESG Ratings and Sustainability Reports across sectors, follow our Company ESG Profiles page.
Source: H2 Green Steel
