Benteler and ArcelorMittal test low-carbon emissions steel in chassis and structural parts

Benteler is to further expand its CO2-reduced product portfolio and its Automotive Division has signed a Memorandum of Understanding with steel and mining company ArcelorMittal.

The two companies already have a longstanding partnership. They will now work together on several sustainability projects to reduce CO2 emissions and use XCarb recycled and renewably produced steel, ArcelorMittal’s low-carbon-emissions steel.

Benteler, which states that it is committed to help its customers achieve their own climate targets by supplying them with CO2-reduced products, has set itself ambitious sustainability targets with the aim of decarbonizing the company and achieving net zero by 2050.

The Benteler Group aims to halve production-related Scope 1 and 2 emissions compared with 2019 as soon as 2030. In addition, upstream and downstream emissions (Scope 3) along the supply chain are also to be reduced by 30%. The Steel/Tube Division is aiming to achieve CO2 neutrality by 2045 through increased energy efficiency, green electricity and CO2-reduced starting material. In addition, Benteler Steel/Tube itself produces ‘green steel’ for customers in an electric arc furnace at its Lingen steel works. However, the production volume there is not sufficient to cover the needs of BENTELER within the group.

Radek Jedlicka, Executive Vice President Global Procurement at Benteler Automotive, emphasizes the importance of the cooperation: “Sustainability is an issue that an industrial company cannot address alone. It takes the entire supply chain to transform the metal processing industry in a sustainable way. We are therefore delighted to be working with ArcelorMittal. Together, we will make mobility even more environmentally friendly.”

The new agreement will help to achieve this goal. In recognition of the potential of using low-carbon-emissions steel in components produced by Benteler Automotive, the two companies are testing the use of XCarb recycled and renewably produced steel. On a lifecycle basis this product has a CO2 footprint which is up to 70% lower, compared with the same product made using the conventional blast furnace process.

“It has been a pleasure to work with our longstanding customer, Benteler Automotive, on this project to test the use of our hot rolled and press hardening steel, made using XCarb recycled and renewably produced, in automotive parts. Steel will play a huge role in reducing CO2 emissions in the automotive supply chain and we would like to thank Benteler for their partnership on our respective decarbonization journeys”, said Paul Brettnacher, CMO Automotive, Packaging, Electrical Steels and Tailored Blanks, ArcelorMittal Europe – Flat Products.