China: Baosteel inks MoU for greener auto steel supply chain

Baoshan Iron & Steel (Baosteel), the listed arm of the world's top steelmaker China Baowu Steel Group, has signed a Memorandum of Understanding (MoU) with Beijing Benz Automotive Co (BBAC) to jointly build a low-carbon and green auto steel supply chain by using greener raw materials for automobile production, according to a release by Baosteel via its official WeChat account on November 22.

Baosteel, thus, will become the very first steel producer in China to supply steel with significantly-reduced carbon emissions to automakers from 2023, the company release noted.

Starting 2026, Baosteel will reduce carbon emissions of steel used in vehicles by 50-80% via the hydrogen-based shaft furnace-electric-arc furnace process, compared with traditional steelmaking. And it will provide green steel with carbon reduction by 95% in the future.

The signing of the MoU indicated that Baosteel is not only promoting carbon reduction in its steelmaking process, but is also collaborating with auto manufacturers to facilitate the application of steel parts with ultra-low carbon emissions, Mysteel Global noted from the release.

Baosteel launched three auto parts in September with their carbon emission cuts exceeding 50%, according to the company.

Written by Rong Zhang, zhangronga@mysteel.com

Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.