BMW Group and HBIS Group Co., Ltd., a state-owned Chinese iron and steel manufacturing behemoth, have signed an MoU to jointly develop an automotive steel supply chain that is low-carbon and environmentally friendly, the German auto giant stated through its WeChat account.
In accordance with the MoU, BMW will begin using HBIS' low-carbon steel on mass-produced vehicle models made at its Shenyang production facility in the middle of 2023.
In comparison to conventional steel materials, HBIS' auto-dedicated low-carbon steel will result in 10- to 30% fewer carbon dioxide emissions during manufacture, according to BMW.
By using green electricity, an electric furnace, and other methods and equipment, "green" steel is produced with a goal of reducing carbon dioxide emissions by around 95%. BMW estimates that starting in 2026, the supply chain will emit less than 230,000 tons of carbon dioxide annually based on the current procurement strategy.
Through the collaboration, BMW Group will be among the first manufacturers in China to employ green steel in mass-produced vehicles.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.