At the International Suppliers Fair (IZB) in Wolfsburg, Germany, Volkswagen Group and thyssenkrupp Steel signed a memorandum of understanding (MoU) for the planned supply to Volkswagen Group of low-carbon steel from thyssenkrupp Steel’s future direct reduction plant.

thyssenkrupp Steel’s direct reduction plant, which is scheduled to go into operation in 2027, will be powered by hydrogen and green electricity, thereby enabling a significantly reduced carbon footprint compared to conventional steel production. The plant will initially be ramped up using natural gas as a reducing agent and will gradually be converted to hydrogen.

The resulting product, bluemint Steel, will be certified according to recognised standards and can achieve the LESS label A when operated with 100% renewably produced hydrogen. This classification, developed by the German Steel Association flanked by Germany’s Federal Ministry for Economic Affairs and Climate Action, provides a full picture of a steel product’s climate impacts and documents its almost emission-free production.

Volkswagen can benefit significantly from this process to avoid CO₂ emissions because 15 to 20 percent of an electric vehicle’s emissions are accounted for by the steel used. Moreover, this decarbonization concept allows the manufacture of the full product portfolio in accordance with the usual specifications and in premium quality.

The CO₂-reduced steel helps the car manufacturer to reduce CO₂ emissions in the Scope 3 category and thus make an important contribution to achieving its own climate targets. Supplies are scheduled to start in 2028 and will then be expanded step by step.

Model direct reduction plant at the thyssenkrupp Steel site in Duisburg.

Steel is the basic material for mobility and the preferred material for vehicle production. On average, 1,000 kilograms of steel are required per vehicle—for a wide variety of applications.

Volkswagen Group and thyssenkrupp Steel have a long-standing partnership, particularly in the field of innovative and cost-effective lightweight construction solutions, for example in the introduction of high-strength steels, which are indispensable above all for safety reasons.

Steel-dominated lightweight construction now accounts for more than 80% of vehicle components. This lightweight material concept also includes hot-formed steels, which enable maximum strength combined with low weight. This is crucial for safety-relevant structures such as A and B pillars or bumpers.

The collaboration between the two companies is increasing their focus on the field of electromobility. It covers economical lightweight solutions for highly stable vehicle structures and electrical steel for efficient electric drive systems. Steel is playing a key role in the mobility transition, not only as a material for generators and electric engines but also as the material of choice for the bodies and other structural components of electric vehicles.

In the context of electromobility, steel is becoming an increasingly important material because more of it is needed in electric vehicles—due to their large battery units—than in combustion vehicles. By combining material expertise and application knowledge, thyssenkrupp Steel is positioning itself as a key player in the further development of electromobility.