Mercedes-Benz AG and Steel Dynamics Inc. secure sustainable steel supply deal for Tuscaloosa plant

19 September 2023

Mercedes-Benz has entered into an agreement with Steel Dynamics, Inc. (SDI) to procure more than 50,000 tonnes of CO2-reduced steel annually for its plant in Tuscaloosa, Alabama. This agreement represents a significant step toward decarbonizing the global steel supply chain for Mercedes-Benz.

The steel supplied by SDI will be produced using an electric arc furnace (EAF) powered by electricity from 100% renewable sources. EAFs, when powered by green electricity, can significantly reduce emissions, with an average of 1.0 tonne of CO2 per tonne of steel compared to traditional primary steel production methods, such as blast furnaces and basic oxygen furnaces. This partnership between SDI and Mercedes-Benz, which has been ongoing since 2015, aims to further reduce emissions in the steel supply chain.

Mercedes-Benz has been using SDI flat rolled steel with 70% or greater recycled scrap content in all its models built in Tuscaloosa, including the EQS SUV and EQE SUV. Both companies have plans to potentially increase the share of scrap in the future, which would further reduce the carbon footprint. The CO2-reduced steel from SDI is set to be introduced into series production at the Tuscaloosa plant starting in September 2023.

This supply agreement in the United States is part of Mercedes-Benz's global efforts to decarbonize its steel supply chain and follows similar agreements in Europe for the procurement of CO2-reduced and nearly CO2-free steel.