Salzgitter Tied Up with Volkswagen on Low Carbon Steel Project

SEATTLE (Scrap Monster): Salzgitter AG- the Germany-based leading steel producer in Europe announced that it has signed a memorandum of understanding (MoU) with the Volkswagen Group to start production of low-carbon steel by the end of 2025. The transformation will lead to carbon savings by up to 95%.

The partnership opens the next chapter of the long collaboration between both the companies, which will lead to decarbonisation of their processes and products. As per the terms of the MoU, Volkswagen will become one of the first customers of low carbon steel that Salzgitter will produce from its headquarters in Lower Saxony. The steel will be used by Volkswagen in Trinity1 e-model, which will be produced in Wolfsburg in 2026.

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The goal of the MoU is to establish a closed-loop recycling system for steel between Volkswagen's main plant in Wolfsburg and the integrated steelworks in Salzgitter. The steel residues from production will be made available to Salzgitter by Volkswagen. The steelmaker will process them into new steel products, which will be delivered to Wolfsburg for car production. This closed loop structure will be extended to more plants in future.

As per reports, Volkswagen has already processed sample quantities of low-carbon steel produced from Salzgitter’s scrap-based electric steel route in Peine. It plans to purchase additional 3,000 tonnes this year.