Often EVs are made with steel. And steel production means CO2 emissions. . .

By Gary S. Vasilash

When people think about reducing vehicular emissions, the first—and likely only—thought is about either what comes out of the tailpipe or whether there is a tailpipe (i.e., the first in the hybrid category and the second in the EV category).

But consider what most cars, crossovers and trucks are made with: steel.

And steelmaking is a carbon-intensive process. It is estimated that steel-making accounts for about 8% of global CO2 emissions, which is just a couple of percentage points behind the auto industry (though that’s both production and use: steel is calculated on the basis of just production).

Volkswagen Group in Germany is doing something to reduce its Scope 3 (things it buys from the supply chain emissions).

It signed a memorandum of understanding with Thyssenkrupp Steel under which the latter will provide the former with low-carbon steel.

Thyssenkrupp Steel is to open a direct reduction steel plant in 2027 that will use hydrogen and green electricity to produce what it calls “bluemint Steel.”

This will be certified under various organizations as being low carbon.

Volkswagen group calculates that 15 to 20 percent of an EV’s CO2 emissions are related to the steel used in its production.

So in order to reach carbon neutrality by 2050 it has to start vigorously reducing its CO2 emissions across the board.