Mercedes-Benz to use green steel in its cars from 2025

Mercedes aims to achieve a fully connected and CO2 neutral vehicle range in 2039.

Mercedes-Benz has taken another step towards achieving CO2 neutrality. The company has invested in Swedish start-up H2 Green Steel (H2GS), which aims to build a carbon neutral steel production plant in Sweden.

This partnership will enable Mercedes-Benz to use green steel in various models as early as 2025. The carmaker aims to achieve a fully connected and CO2 neutral vehicle range in 2039.

Today, a Mercedes sedan is made from about 50% steel. This accounts for about 30% of CO2 emissions in production. H2GS plans to build a large-scale fossil-free steel plant that will be able to produce 5 million tons of green steel by 2030. The factory will use hydrogen and electricity from 100% renewable energy sources instead of coking coal.