Economic Observer Network reporter Gao Feichang intern Zhang XinlinOn August 4, at the BMW Group sustainable development sharing meeting held in Shenyang, BMW Group and Hegang Group signed the "Building Green"Low-carbon Steel Supply Chain Cooperation Memorandum", announcing the first use of green automotive steel (referred to as "green steel") in the industry, and promoting the implementation of the "360-degree sustainable development" strategy.The BMW Group became one of the first automakers to formulate clear plans in China to use green automotive steel in mass production.

Signing Ceremony between BMW Group and Hegang Group

The "Memorandum of Cooperation" shows that with the upgrading and iteration of innovative technologies in the steel industry, from 2026, BMW's Shenyang production base will start to use green steel produced by HBIS in the process of mass production of complete vehicles.

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%).The "green steel" announced by BMW's Shenyang production base is based on processes such as green electricity and electric furnaces, and the production process will gradually reduce carbon dioxide emissions by about 95%.

According to the agreement, BMW will become the first customer of HBIS'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 from iron ore mining to steel products, from automotive steel to automotive scrappingCarbon emissions data will be recorded one by one at all stages.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.

At present, with the upgrading and iteration of innovative technologies in the steel industry, how to effectively control the total carbon emissions of the automobile industry is of great significance to the full realization of the carbon neutrality goal.

At the policy level, on August 1, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Ecology and Environment jointly issued the "Implementation Plan for Carbon Peaking in the Industrial Sector", which clearly stated that by 2025, the number of industrial units above designated size will increaseValue energy consumption decreased by 13.5% compared with 2020.At the same time, the plan also proposes six key tasks, such as in-depth adjustment of the industrial structure, in-depth promotion of energy conservation and carbon reduction, and acceleration of industrial green and low-carbon technological transformation, as well as two major actions: the action of peaking in key industries and the action of improving the supply of green and low-carbon products.

Sustainability is not a new topic for the BMW Group.As early as 1973, the BMW Group became the first company in the automotive industry to set up the position of "Chief Environmental Officer"; in 2013, BMW launched the BMW i3, becoming a pioneer in the field of electric mobility; in 2020, BMW proposed a plan that runs through the entire value chainemission reduction targets.

Last year, the BMW Group, together with China Development Research Foundation and other institutions, jointly launched the "Industrial Chain Green Transformation Initiative" to integrate sustainable development strategies throughout the entire value chain.

In the past year, BMW and related companies have carried out several practices, including using only green energy to produce high-voltage power batteries, using green electricity for charging at public charging piles, and realizing the first closed loop of domestic electric vehicle power battery source materials.Recycling and other projects have also completed basic research on the two themes of "low-carbon transformation of the iron and steel industry" and "green power acquisition".

The joint carbon reduction with the steel industry is an important milestone after the BMW Group launched the "Green Transformation of the Industrial Chain" initiative, and it is also a breakthrough cooperation between the two industries in green transformation.

“For the BMW Group, carbon reduction in the automotive industry means more than just electrification. The BMW Group’s sustainability strategy focuses on carbon reduction throughout the life cycle of vehicles, and the supply chain is an important part of it.In Europe, we have signed cooperation agreements with two steel mills. In China, we have chosen to cooperate with HBIS.” said Gao Le, President and CEO of BMW Group Greater China.

It is understood that the decarbonization technology route of Hegang Group includes: at present, the carbon emission reduction of automobile steel in the existing converter process is more than 10%; in the medium and long term, the newly constructed electric furnace short process can achieve carbon emission reduction of more than 50%;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%.

After the signing of the "Memorandum of Cooperation", the BMW Group also plans to continue to promote the "360-degree all-round promotion of sustainable development" strategy.According to Moody's, Director of Business Development and Corporate Sustainability at BMW Brilliance Automotive Co., Ltd., the BMW Group's goal is to increase the use of recyclable and reusable materials from 30% to 50% now; by 2030, the entire bicycleLife-cycle carbon emissions reduced by at least 40%; by 2050, fully climate neutral.