Georgsmarienhütte and Volkswagen intensify collaboration for sustainable steel

Sustainability Green Steel for Mobility

2026-01-07 Source: Press release by Georgsmarienhütte | Translated by AI 1 min Reading Time

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Georgsmarienhütte GmbH deepens its long-standing collaboration with Volkswagen AG. Green Power Premium Steel with 98 percent less CO₂ is now in use.

Georgsmarienhütte GmbH deepens its long-standing collaboration with Volkswagen AG. "Green Power Premium Steel" aims to achieve a 98 percent reduction in CO₂ footprint.(Image: Uwe Lewandowski) — Georgsmarienhütte GmbH deepens its long-standing collaboration with Volkswagen AG. "Green Power Premium Steel" aims to achieve a 98 percent reduction in CO₂ footprint.
(Image: Uwe Lewandowski)

Georgsmarienhütte GmbH, a company of the GMH Group, and Volkswagen AG are intensifying their collaboration in the spirit of decarbonization, according to Georgsmarienhütte GmbH.

Sustainable Material Sourcing

Since 2025, the automobile manufacturer has been relying on the "Green Power Premium Steel" product line for its material sourcing from Georgsmarienhütte. This CO₂-reduced bar steel from Georgsmarienhütte is used by Volkswagen in the in-house production of transmission components.

The stainless steel is produced in an electric arc furnace using 100 percent renewable electricity. Biogenic coal is also used as a raw material in production. This reduces the CO₂ footprint by up to 98 percent (Scope 1 and 2) compared to steel conventionally produced in a blast furnace. Additionally, a reduction in CO₂ emissions of up to 78 percent is achieved compared to conventional steel, even taking Scope 3 emissions into account.

From Scrap to Steel: A Closed Loop

As a pilot project in the field of circular economy, Volkswagen and Georgsmarienhütte have been connected since 2021: Within the framework of a closed material cycle, steel scrap generated at various Volkswagen plants is sent to Georgsmarienhütte's electric steel mill and processed into new, high-quality raw material. For this, the GMH Group was awarded as Volkswagen Group's most sustainable supplier in 2023.

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