Volkswagen will use GMH Gruppe green steel for round production

German automaker Volkswagen AG will purchase Green Power Premium Steel from Georgsmarienhütte GmbH, a subsidiary of German specialty steel manufacturer GMH Gruppe, according to a statement released by the latter. Low-carbon steel will be used in Volkswagen's own production of transmission components, marking another milestone in the automaker's transition to environmentally friendly materials and circular production.

Reduction of emissions by up to 98%

The new steel produced in an electric arc furnace (EDP) powered entirely by renewable electricity includes certified biogenic coal, which reduces emissions of Scope 1 and 2 by up to 98% compared to conventional blast furnace steel.

When Scope 3 emissions are included, the overall reduction reaches 78 percent, making this steel one of the lowest carbon grades available for automotive applications.

Volkswagen and Georgsmarienhütte have been operating a closed-loop scrap metal recycling system since 2021:

• Steel scrap from Volkswagen plants is sent back to the GMH steel plant in Georgsmarienhütte.
• The scrap is melted down and processed into new high-quality steel, which is then reused in Volkswagen production.