Press Release

Green Steel for Mercedes-Benz: Partnership with SSAB

Mercedes-Benz is taking another important step on the way to a green steel supply chain. To this end, the company has launched a partnership with the Swedish steel manufacturer SSAB for CO2 free steel. Together, the partners are already setting the course to introduce green steel into the vehicles as quickly as possible: The first prototype parts for body shells made of CO2 free steel are already being planned for next year.

For the production of the steel, the partner relies on hydrogen made from water and fossil-free energy. Instead of coking coal, hydrogen is used to reduce iron oxide to crude iron, a crucial step towards a complete green steel value chain with virtually no CO2 emissions. A pilot plant for fossil-free steel is already operating. From 2026, SSAB aims to supply the market with fossil-free steel on an industrial scale.

Green Mercedes-Benz steel supply chain

Mercedes-Benz takes every opportunity to reduce emissions quickly and sustainably. By the end of the decade, the company will be ready to go all-electric – everywhere market conditions allow. With this strategic step from “Electric first” to “Electric only”, Mercedes-Benz is accelerating the transformation to a emission free and software-driven future.

By 2039 at the latest, the Mercedes-Benz new passenger car fleet will become CO2 neutral along the entire value chain, including the supplier network. Together with all of its steel suppliers, the company pursues the goal of a green steel supply chain. In doing so, Mercedes-Benz is deliberately focusing on avoiding and reducing CO2 emissions instead of compensation. The partnership with SSAB is another important step towards this goal, with which the company accelerates the development and production of CO2-free steel in Europe.

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