Mercedes-Benz and H2 Green Steel announce agreements in both Europe and North America
Mercedes-Benz and H2 Green Steel have signed a binding agreement for the delivery of about 50.000 tonnes of green steel to the car maker’s European production annually. In a pioneer move Mercedes-Benz has also signed a memorandum of understanding with H2 Green Steel for the potential supply of green steel produced in North America.
Mercedes-Benz was an early investor in H2 Green Steel and was also early out in confirming customer demand for green steel through an offtake agreement. This agreement has now been further developed into a binding agreement covering volumes of about 50.000 tonnes per year, which will be produced in H2 Green Steel’s green hydrogen powered iron and steel plant in Boden in northern Sweden. In using high-quality steel that is sustainably produced, Mercedes-Benz takes yet another step towards reducing the environmental impact from its car manufacturing.
“H2 Green Steel exists because pioneering companies in the automotive industry, like Mercedes-Benz, signaled the transition in the steel industry was too slow for them to meet their climate targets. Working side-by-side with Mercedes Benz, we have a partner with whom we can raise the bar when it comes to supply chain emissions, circularity and social sustainability. They are a very strong player to liaise with for our European operations, but naturally also as we endeavor into the steel value chain in North America,” says, Henrik Henriksson, CEO, H2 Green Steel.
In addition to a sustainable production of green steel, Mercedes-Benz has a strong commitment to circularity and the two companies will create a closed-loop recycling of scrap steel to the Boden plant. The partnership also includes H2 Green Steel being able to leverage Mercedes-Benz extensive knowledge and expertise in supply chain human rights.
“With the supply deal of around 50.000 tonnes almost CO2-free steel from H2 Green Steel for our manufacturing plants in Europe, Mercedes-Benz and H2 Green Steel are accelerating the creation of a decarbonised, regional and resilient steel supply chain. At the same time, we are taking our partnership to the next level with the aim of establishing a sustainable steel supply chain in North America, another important step towards making the auto industry more resilient and sustainable,” says Markus Schäfer, Member of the Board of Management of Mercedes-Benz Group AG. Chief Technology Officer, Development & Procurement.
With the partnership in Europe as the foundation, the two companies have also agreed to work together to enable a long-term supply of green steel produced in North America for Mercedes-Benz’s manufacturing plants in North and South America. By doing so, the companies will demonstrate the feasibility and value of a green steel supply chain.
“We have talked to different stakeholders in both Canada and the US for some time and the possibility to leverage a large supply of renewable electricity for the production of green hydrogen and green sponge iron that can feed a sustainable steel production is a very interesting prospect for H2 Green Steel as it continues to push the steel value chain to decarbonize globally”, says Henriksson.
Karin Hallstan, Head of Public and Media Relations, phone: +46 76 842 81 04, email: press@h2greensteel.com
About H2 Green Steel
H2 Green Steel (H2GS AB) was founded in 2020 with the ambition to accelerate the decarbonization of the steel industry, using green hydrogen. Steel, which is one of the world’s largest carbon dioxide emitters, is the company’s first business vertical. The founder and largest shareholder of H2 Green Steel is Vargas, which is also co-founder and one of the larger shareholders in Swedish battery maker Northvolt. H2 Green Steel is headquartered in Stockholm, Sweden, with its first green steel plant under development in Boden, northern Sweden. www.h2greensteel.com
About Mercedes-BenzAG
MercedesBenz AG is part of the MercedesBenz Group AG with a total of around 170,000 employees worldwide and is responsible for the global business of MercedesBenz Cars and MercedesBenz Vans. Ola Källenius is Chairman of the Board of Management of MercedesBenz AG. The company focuses on the development, production and sales of passenger cars, vans and vehicle-related services. Furthermore, the company aspires to be the leader in the fields of electric mobility and vehicle software. The product portfolio comprises the MercedesBenz brand with the brands of MercedesAMG, MercedesMaybach, MercedesEQ, GClass as well as products of the smart brand. The Mercedes me brand offers access to the digital services from MercedesBenz. MercedesBenz AG is one of the world's largest manufacturers of luxury passenger cars. In 2022 it sold around two million passenger cars and 415,300 vans. In its two business segments, MercedesBenz AG is continually expanding its worldwide production network with around 35 production sites on four continents, while gearing itself to meet the requirements of electric mobility. At the same time, the company is constructing and extending its global battery production network on three continents. As sustainability is the guiding principle of the MercedesBenz strategy and for the company itself, this means creating lasting value for all stakeholders: for customers, employees, investors, business partners and society as a whole. The basis for this is the sustainable business strategy of the MercedesBenz Group. The company thus takes responsibility for the economic, ecological and social effects of its business activities and looks at the entire value chain.
