Germany’s Federal Environment Minister Carsten Schneider has called on the country’s automotive industry to source more raw materials domestically, stressing the importance of maintaining a strong national steel sector, according to German media reports.
Schneider said large corporations should show more “local patriotism” when it comes to procurement. He argued that Germany needs a functioning domestic steel industry to remain economically independent and competitive, adding that government support for producers such as Thyssenkrupp is essential as they move toward decarbonized production.
Priority for European steel over low-cost imports
The minister also expressed support for prioritizing European suppliers. He rejected proposals to source steel components from countries such as Saudi Arabia, where energy costs are lower, and carry out only final processing in Germany.
Instead, Schneider advocated the creation of lead markets for steel produced using green hydrogen. He pointed to the railway sector’s recent purchase of European green steel for tracks as an example that could be replicated in the automotive industry.
Incentives under discussion to boost green steel use
According to the minister, carmakers have so far been reluctant to adopt green steel at scale. To address this, he suggested introducing new incentives.
One proposal under discussion in Brussels would allow manufacturers that continue to sell plug-in hybrid vehicles after 2035 to offset additional emissions by using green steel in production. Schneider acknowledged that not all industry players support this approach but said it reflects the German government’s position in EU negotiations.