Green steel for Tomorrow’s Mobility

Georgsmarienhütte GmbH, a unit of GMH Gruppe, is taking its partnership with Volkswagen AG to the next level in the drive towards decarbonisation. Beginning in 2025, Volkswagen will rely on ‘Green Power Premium Steel’ from Georgsmarienhütte – a groundbreaking low-carbon steel that will be used in the in-house production of transmission components.

This high-quality special steel is produced in an electric arc furnace powered entirely by renewable energy and enhanced by the use of certified biogenic coal. This premium steel reduces CO₂ emissions by up to 98% (Scope 1 and 2) compared with conventionally produced blast furnace steel. Even when considering Scope 3 emissions, ‘Green Power Premium Steel’ achieves a significant reduction of up to 78% in emissions.

“Our partnership with Volkswagen demonstrates what the future of industry can look like. With Green Power Premium Steel, we are not only supplying a product – we are tackling the urgent challenges of climate change. Our integration of 100% green electricity, biogenic coal, and transparent CO₂ accounting sets new standards in the entire steel sector,” said Dr. Alexander Becker, CEO of the GMH Gruppe.

From Scrap to Steel: Closing the Loop

Since 2021, Volkswagen and Georgsmarienhütte have been pioneers in circular economy initiatives. Through an innovative closed material cycle, steel scrap from various Volkswagen plants is returned to Georgsmarienhütte´s electric steel mill, where it is repurposed into high-quality new steel. This closed-loop system not only conserves resources but also demonstrates how sustainable value creation can operate in practice.

In recognition of this pioneering collaboration, the GMH Group was honoured as the Volkswagen Group’s Most Sustainable Supplier in 2023.