German carmaker Volkswagen AG will procure Green Power Premium Steel from Georgsmarienhütte GmbH, a subsidiary of German special steel producer GMH Gruppe, according to a statement released by the latter. The low-carbon steel will be used in Volkswagen’s in-house production of transmission components, marking another milestone in the automaker’s shift toward sustainable materials and circular manufacturing.
Up to 98 percent emission reduction
Produced in an electric arc furnace (EAF) powered entirely by renewable electricity, the new steel incorporates certified biogenic coal, enabling an up to 98 percent reduction in Scope 1 and 2 emissions compared with conventional blast-furnace steel.
When Scope 3 emissions are included, the total reduction reaches 78 percent, making this one of the lowest-carbon steel grades available for automotive applications.
Since 2021, Volkswagen and Georgsmarienhütte have operated a closed-loop scrap-recycling system:
- Steel scrap from Volkswagen plants is sent back to GMH’s EAF steelworks in Georgsmarienhütte.
- The scrap is remelted and processed into new premium steel, which is then reused in Volkswagen’s manufacturing.