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Steel Dynamics has signed an agreement to supply 50,000 tonnes of CO2-reduced steel a year to Mercedes’ US assembly plant in Tuscaloosa, Alabama which builds the GLE, GLE coupe and GLS SUVs along with the EQS and EQE EVs.

The suplier makes the material in electric arc furnaces (EAF) using 100% renewable electricity. Its flat rolled steel is made from 70% recycled scrap and is used in all Mercedes models built in the US.

The new CO2-reduced steel could be used in series production from this month.

Mercedes is a member of the Responsible Steel Initiative and involved in the development of a certifiable sustainability standard for the steel industry.

The automaker said the aim was to “ensure environmentally compatible and socially acceptable steel production along the entire value chain”.

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By GlobalData