VW, Salzgitter collaborate on low-carbon steel project


As the energy transition continues to gain traction, hard-to-abate areas such as steel manufacturing have taken centre stage for decarbonisation.

A Memorandum of Understanding (MoU) signed between Volkswagen Group (VW) and Salzgitter AG (Salzgitter) will see Salzgitter, which plans to start production of low-carbon dioxide (CO2) steel from the end of 2025, provide its so-called ‘green steel’ to VW. 

The deal will enable both companies to accelerate net zero ambitions, in addition to enabling Salzgitter to save over 95% of CO2 emissions in steel production based on hydrogen and renewable energies. 

The reduction of CO2 from its supply chain is part of VW’s strategy to become a carbon-neutral mobility provider by 2050. 

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