Gestamp and primary metals producer Hydnum Steel have signed an agreement to use clean steel produced with renewable energy and green hydrogen for the manufacturing of automotive components.

The companies say the collaboration marks a significant step forward in the decarbonisation of the mobility sector.

The agreement was formalized by Javier Imaz, Chief Purchasing Officer (CPO) of Gestamp, and Gilles Mirol, Chief Marketing Officer of Hydnum Steel.

Under the terms of the partnership, Gestamp —through its metal recycling subsidiary, Gescrap— will supply high-quality steel scrap from stamping processes to Hydnum Steel, which will then use renewable energy and green hydrogen to produce ultra-low CO₂ emission steel.

The agreement also includes technical collaboration to develop steel grades that meet the automotive industry’s demanding standards in terms of chemical composition, mechanical properties, thickness, and finish. Gestamp will have priority access to these low-emission steels for the production of advanced metal components, further supporting the transition to sustainable mobility.

This collaboration will help advance circularity, a key pillar for decarbonizing the automotive supply chain and for achieving, in the long term, the Net Zero Car.

The initiative aligns with Gestamp’s decarbonisation strategy, which emphasizes the use of more sustainable raw materials, material recycling, and partnerships with strategic allies to drive cleaner and more efficient mobility. Recycling production scrap—especially steel and aluminium, which account for more than 70% of Gestamp’s total emissions due to their carbon-intensive production processes—is particularly critical.

Gestamp’s circularity model ensures the availability of high-quality scrap to produce ultra-low-emission steels, enabling full traceability of the material lifecycle through collection, sorting, and reintegration into the production chain.

For Hydnum Steel, the extensive use of scrap metal as a raw material is central to applying circular economy principles to its production model. Its Puertollano plant will be the first of its kind in the Iberian Peninsula, operating with an electric arc furnace powered exclusively by renewable energy. The substitution of natural gas with green hydrogen will reduce emissions by 98% compared to a traditional steel mill. The plant will also feature a closed-loop water treatment and reuse system, achieving zero discharge.

Javier Imaz, Chief Purchasing Officer (CPO) of Gestamp, said: “This agreement marks another step forward in our efforts to decarbonize the automotive industry and strengthens our circular economy model, which is based on the sustainable management of resources and the reuse of our high-quality scrap in steel production”.

Gilles Mirol, Chief Marketing Officer (CMO) of Hydnum Steel, said: “The partnership reflects the commitment of both companies to advancing a sustainable and efficient European industry. Hydnum Steel’s plant is a flagship project for the energy transition and will produce steel with the utmost respect for the environment”.