The automotive industry is currently undergoing a significant transformation as the European Union has put forth plans to prohibit the sale of new vehicles with internal combustion engines by the year 2035. This shift towards electric vehicles has amplified the urgency of environmental action in the production of automotive steel.
The need to clean up our air and reduce carbon emissions is of paramount importance, and there is mounting awareness that decarbonizing transport extends beyond addressing just tailpipe emissions. This includes the production of steel, a critical component in the automotive industry.
Steel production accounts for approximately 12% of global carbon emissions, with over 10% of global steel production being utilized in the automotive sector. This results in a staggering 427.5 million tonnes of CO2 being generated annually. For instance, in Germany, where the automotive sector employs nearly 800,000 people and generates a turnover of over €400 billion, it plays a vital role in the European economy.
The demand for high-strength, lightweight steels in the automotive sector presents a lucrative market for steelmakers, valued at over €110 billion annually. However, the current overwhelming demand is met through the use of steel from coal-powered blast furnaces, resulting in substantial carbon emissions. It is estimated that producing the average 900kg of steel in a new vehicle requires around 700kg of coal.
The encouraging news is that green steel, a more sustainable alternative, is on the horizon. Many leading companies in the automotive sector have already made commitments to transition to green steel and are actively working towards its implementation.
The transition to green steel will be the focal point of an upcoming event, where participants will deliberate on the significance of the move to green steel, the practical actions being taken by companies to develop greener vehicles, and the future trends needed to expedite the transition.
The event will be hosted by Andrew Forth, Senior Public Affairs Manager at the Climate Group, and will feature key speakers from Volvo Cars, SKF Group, and ThyssenKrupp Steel who will provide crucial insights and engage in a comprehensive discussion on the importance of green steel in decarbonizing the automotive sector.
Those who are interested in delving deeper into the reasons behind the shift to green steel by car makers, suppliers, and customers, as well as the implications of this transition, are encouraged to register for this event. By doing so, they will gain valuable insights and have the opportunity to contribute to the discussion.