The close cooperation between the Volkswagen Group and Salzgitter AG began over 60 years ago and is now entering a new phase oriented towards the decarbonisation of processes and products. With the memorandum of understanding announced today, the Volkswagen Group will become one of the first buyers of thelow CO2 emissions steel which Salzgitter AG plans to produce with a new production cycle in the its headquarters in Lower Saxony since the end of 2025.
According to Salzgitter AG, this will save more than 95% of the CO2 emissions generated during steel production in the future, thanks to the use of hydrogen and renewable energies. The Volkswagen Group plans to use this material from the end of the same year in important future projects such as the model Trinity, which will be produced in Wolfsburg from 2026. Lhe cooperation between the two companies on the so-called “green steel” has already begun. Last year the Volkswagen Group processed for the first time sample quantities of CO2-reduced steel supplied by Salzgitter AG, produced in Peine in a process using scrap and electric furnace and with a CO2 footprint reduced by 66% . This year, the Group plans to purchase another 3,000 tons.
Part of the joint agreement is also the goal of establishing a closed-loop steel recycling system between the Volkswagen Group’s main plant in Wolfsburg and the integrated steel plant in Salzgitter. The Volkswagen Group therefore makes the steel scraps from production available again to Salzgitter AG, which melts them, transforms them into new products and delivers them to Wolfsburg for the production of other cars. The goal in the future is to extend this “closed cycle” of steel to other production sites of the Volkswagen Group.
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