On August 4, BMW Group and Hegang Group signed the "Memorandum of Cooperation in Building a Green and Low-Carbon Steel Supply Chain" in Shenyang to jointly build a green and low-carbon automotive steel supply chain: starting from mid-2023, BMW's Shenyang production base will mass-produce models HBIS's low-carbon automotive steel will be gradually used; the production process of these low-carbon automotive steels will generate 10 to 30 percent less carbon dioxide than conventional steels.
With the upgrading and iteration of innovative technologies in the steel industry, from 2026, the BMW Shenyang production base will start to use the green automotive steel (referred to as "green steel") produced by HBIS in the process of mass production of complete vehicles.
These "green steels" are based on processes such as green electricity and electric furnaces, and their production process will gradually reduce carbon dioxide emissions by about 95%.
According to the current procurement plan, BMW is expected to reduce carbon dioxide emissions by about 230,000 tons per year in the supply chain from 2026.
The BMW Group became one of the first automakers to formulate clear plans in China to use green automotive steel in mass production.
According to the agreement, BMW will become the first customer of Hegang's green and low-carbon automotive steel.
Based on BMW's low-carbon demand for steel materials, the two parties will develop green and low-carbon automotive steel materials and complete relevant certifications.
In addition, the two parties will also evaluate carbon emissions data in a "fully transparent" manner during the entire life cycle of automotive steel products - including everything from iron ore mining to steel products, from automotive steel to automotive scrapping At each stage, carbon emission data will be recorded one by one.
The two sides will also actively carry out the research and development and application of carbon-negative technologies such as clean energy, and establish a docking and exchange mechanism to actively promote personnel training in related fields.
“For the BMW Group, carbon reduction in the automotive industry means more than just an electrification transition. The BMW Group’s sustainability strategy focuses on reducing carbon emissions throughout the car’s life cycle, and the supply chain is an important part of it. In Europe, we Cooperation agreements have been signed with two steel mills. In China, we have chosen to cooperate with HBIS to use green automotive steel from 2026," said Gao Le, President and CEO of BMW Group Greater China.
"The joint carbon reduction with the steel industry is an important progress after we launched the 'Industrial Chain Green Transformation' initiative last year, and it is also a breakthrough cooperation between the two industries in green transformation. Following the 'Home in China' commitment, BMW hopes Together with local Chinese partners, we will promote green and low-carbon development with innovative technologies and contribute to China's 'two-carbon' goal."
At the BMW Group China's first sustainable development summit in June last year, BMW Group, together with China Development Research Foundation and other institutions, jointly launched the "Industry Chain Green Transformation Initiative" to address the challenges faced by upstream and downstream enterprises in the industrial chain. Carbon transformation, green power acquisition, circular economy, and green and low-carbon standards” and other four major challenges, and cooperate with experts from industry, academia and research to carry out in-depth seminars, special research, field research and other activities.
The China Development Research Foundation has formed a number of independent research reports on topics such as the green transformation of steel and green electricity acquisition, and put forward countermeasures and suggestions for the reference of relevant policy makers.
Researcher Cheng Huiqiang, deputy secretary-general of the China Development Research Foundation, said: "Enterprises are the key players in the practice of green, low-carbon and circular development, and an important promoter of industrial green transformation and green innovation. Sustainable development involves all aspects of the industry, and cross-disciplinary cooperation is The general trend. The cooperation between BMW Group and Hegang Group has opened a door for the application of green automotive steel in the automotive field, which is of great significance. We hope that more enterprises will join the army of green, low-carbon and circular development and help China's development with practical actions. carbon reduction.”
Innovation empowers sustainable supply chains
It is estimated that the carbon emissions of steel used in the production of a medium-sized pure electric vehicle account for about 20% of the carbon emissions of the car's supply chain, second only to the production of high-voltage batteries (26%) and light metal materials (23%).
Therefore, the production and use of green automotive steel is one of the effective levers to reduce carbon dioxide emissions in the entire life cycle of automobiles.
Dr. Dai Hexuan, President and CEO of BMW Brilliance Automotive Co., Ltd., said: "BMW Brilliance is committed to working with innovative local suppliers to promote the development of a sustainable automotive supply chain in China. Today's signing with HBIS allows us to start from the source of the supply chain. It paves the way for a significant reduction in carbon emissions. In short, green automotive steel will help us produce greener cars and achieve our shared sustainable development goals. Together, we will contribute to China's industrial upgrading and green transformation."
HBIS took the lead in the industry to release an action plan for green and low-carbon development, formulated a clear technical roadmap, and took the lead in launching the world's first 1.2 million-ton hydrogen metallurgy demonstration project in the industry. The leading edge of low carbon metallurgy.
According to the agreement, HBIS will complete the process path development and related certification according to the established timetable.
Its decarbonization technology route mainly includes: in the short term, using hydrogen-based direct reduction iron to achieve carbon emission reduction of more than 10% in the existing converter process of auto steel; in the medium and long term, the newly constructed electric furnace short process can achieve more than 50% carbon emission reduction. After 2025, combined with measures such as green electricity, the electric furnace green automobile steel process will gradually reduce carbon dioxide emissions by about 95%.
A "horse" takes the lead: 360-degree sustainable development strategy
The BMW Group firmly believes that the most basic carbon reduction goals can only be achieved if the entire life cycle is sustainable from initial resource extraction to final vehicle recycling.
By 2030, the BMW Group plans to reduce the average life cycle carbon emissions of a single vehicle by 40% compared with 2019, including a 20% reduction on the supply chain side, an 80% reduction on the production side, and a 50% reduction on the user side; The proportion of recycled and reusable materials will gradually increase from 30% to 50%.
Starting from reducing carbon dioxide emissions, protecting natural resources and complying with relevant environmental and social conventions, the BMW Group is committed to creating the most sustainable supply chain in the automotive industry.
For example, the fifth-generation BMW eDrive electric drive system has been designed to reduce the dependence on permanent magnet rare earth resources; the BMW Group has been advocating responsible resource extraction globally, and will directly purchase lithium and cobalt from 2020; in China, BMW The Group cooperates with Huayou to realize closed-loop recycling and cascade utilization of power battery raw materials, which is a typical case of BMW recycling.
Committed to "producing the greenest electric vehicle", BMW Group will focus on the 360-degree sustainable development strategy, carry out cross-industry cooperation with Chinese partners, and work together on the road of green development.