Mercedes signs sustainable steel supply deal for Tuscaloosa plant

London, 18 September, 2023, (Oilandgaspress) – Mercedes-Benz signs an agreement with Steel Dynamics, Inc. (SDI) to source more than 50,000 tonnes of CO₂-reduced steel annually for its plant in Tuscaloosa, Alabama, marking another crucial milestone towards decarbonizing its global steel supply chain.

SDI steel will be made using an electric arc furnace (EAF) and will use electricity from 100% renewable sources. With EAFs powered by green electricity emissions can be reduced more than half to 1.0-ton CO₂ per ton steel on average compared to primary steel production which uses blast furnaces and basic oxygen furnaces. In doing so, SDI and Mercedes-Benz, which have been working together since 2015, go a step further towards lowering emissions in the steel supply chain.

SDI 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. Both parties agreed to potentially increase the share of scrap in the near future, which would reduce the carbon footprint even further. The CO₂-reduced steel from SDI is being introduced into series production at Tuscaloosa plant as early as September 2023.

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.

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