Mercedes-Benz and H2 Green Steel announce agreements in both Europe and North America

Mercedes-Benz and H2 Green Steel have signed an agreement to supply around 50,000 tonnes of green steel per year to the carmaker’s European production. As a first, Mercedes-Benz has signed a memorandum of understanding with H2 Green Steel for the potential supply of green steel produced in North America. Mercedes-Benz H2 was an early investor in green steel and was also early to ensure customer demand for green steel through an off-take contract.

The agreement has now been developed into a binding contract for approximately 50,000 tonnes per annum, which will be produced at H2 Green Steel’s green hydrogen-powered iron and steel plant in Boden, northern Sweden. By using sustainably produced high-quality steel, Mercedes-Benz is taking another step towards reducing the environmental impact of its car production. In addition to the sustainable production of green steel, Mercedes-Benz is committed to circularity and both companies will create a closed loop for the recycling of scrap steel for the Boden plant.

The partnership also means that H2 Green Steel can draw on Mercedes-Benz’s extensive knowledge and expertise in the field of human rights in the supply chain. Based on the partnership in Europe, the two companies have agreed to work together on the long-term supply of green steel produced in North America to Mercedes-Benz plants in the United States. In this way, companies can demonstrate the potential and value of a green steel supply chain.