BMW, HBIS Group team up on building green, low-carbon steel supply chain

Shanghai (Gasgoo)- On August 4, BMW Group and HBIS Group Co., Ltd. ("HBIS"), a state-owned Chinese iron and steel manufacturing conglomerate, signed an MoU (memorandum of understanding) to co-build a green and low-carbon automotive steel supply chain, the German auto giant announced via its WeChat account.

Under the MoU, BMW will use HBIS' low-carbon steel on mass-produced vehicle models manufactured at its Shenyang production factory starting mid-2023.

Photo credit: BMW Group

BMW said 10% to 30% carbon-dioxide emissions would be decreased during the production process of HBIS' auto-dedicated low-carbon steel compared to that of traditional steel materials.

From the year 2026 on, BMW's Shenyang factory will utilize HBIS' automotive "green" steel in vehicle volume production.

The "green" steel is made by virtue of green power, electric furnace, and other techniques and facilities, targeting reduction of around 95% carbon-dioxide emissions. Based on the present procurement plan, BMW expects to decrease roughly 230,000 tonnes of carbon-dioxide emissions annually in the supply chain from 2026. 

Through the partnership, BMW Group will become one of the first automakers to use green steel in vehicle volume production in China and draw up a specific timeframe for this matter.