Mercedes Signs Supply Deal with SDI
By Metal Center News Staff
on Sep 19, 2023
Mercedes-Benz has signed an agreement with Steel Dynamics Inc. to source more than 50,000 metric tons of CO2-reduced steel annually for its plant in Tuscaloosa, Ala. The agreement marks another crucial milestone toward decarbonizing its global steel supply chain, the German automaker said.
SDI steel will be made using an electric arc furnace and will use electricity from 100 percent renewable sources. With EAFs powered by green electricity, emissions can be reduced more than half to 1-ton CO2 per metric steel on average compared to primary steel production which uses blast furnaces and basic oxygen furnaces.
SDI flat rolled steel made of 70 percent or greater recycled scrap content is being used in all Mercedes-Benz models built in Tuscaloosa, including the EQS SUV and EQE SUV. Both parties agreed to potentially increase the share of scrap in the near future, which would reduce the carbon footprint even further. The CO2-reduced steel from SDI is being introduced into series production at Tuscaloosa plant as early as September 2023.