German steelmaker Thyssenkrupp has announced that it has signed a memorandum of understanding with Germany-headquartered global automotive producer Volkswagen to supply carbon-reduced steel under the brand bluemint® Steel from its future direct reduction plant. The use of bluemint® Steel will support Volkswagen Group, which aims to achieve carbon neutrality by 2050 at the latest, in reducing carbon emissions in the supply chain.
The announcement said that signing this memorandum of understanding marks an important step on Volkswagen’s path to decarbonizing key industrial processes in Germany as 15 to 20 percent of an electric vehicle’s emissions are accounted for by the steel used.
Following the commissioning of Thyssenkrupp’s direct reduction plant in 2027, the supplies are scheduled to start in 2028 and will then be expanded step by step. The plant will be powered by hydrogen and green electricity, enabling a significantly reduced carbon footprint compared to conventional steel production.