German media reported that Germany's Federal Environment Minister Carsten Schneider called on the country's auto industry to source more raw materials domestically, stressing the importance of maintaining a strong national steel sector.
Schneider said large corporations should show more "local patriotism" when it comes to purchasing. He argued that Germany needs a functioning domestic steel industry to remain economically independent and competitive, adding that government support for producers such as Thyssenkrupp is essential as they move towards decarbonized production.
Prioritizing European steel over cheap imports
The Minister also expressed support for prioritizing European suppliers. He rejected proposals to source steel components from countries such as Saudi Arabia, where energy costs are lower, and carry out only final processing in Germany.
Schneider instead advocated creating lead markets for steel produced using green hydrogen. He pointed to the railway sector's recent purchase of European green steel for rail tracks as an example that could be replicated in the auto industry.
Incentives to increase the use of green steel are being discussed
Car manufacturers are still reluctant to accept green steel in large quantities, the minister said. scale. To solve this problem, he proposed introducing new incentives.
One proposal being discussed in Brussels would allow producers
