Mercedes-Benz has signed an settlement with H2 Inexperienced Metal, a Swedish start-up, to supply 50,000 tons of low-carbon dioxide metal for the automaker’s meeting crops in Europe and North America.

Mercedes took an fairness stake in H2 Inexperienced Metal in 2021, and the brand new settlement expands the strategic partnership with the purpose of creating a North American provide chain for “nearly CO2-free” metal. Automobile manufacturing utilizing the metal is ready to begin in 2025.

“Primarily based on our preliminary funding into H2 Inexperienced Metal, we now have a finalized, related provide settlement for Europe and are actually establishing a sustainable metal provide in North America,” Gunnar Güthenke, head of procurement and provider high quality at Mercedes-Benz Automobiles, mentioned in an announcement on Wednesday.

So-called inexperienced metal makes use of hydrogen and renewable power within the manufacturing course of. As an alternative of CO2, the method emits water vapor. 

Metal utilizing a standard blast furnace utilizing coking coal is without doubt one of the highest-emitting industrial processes. Mercedes says it will possibly produce greater than two tons of CO2 per ton of metal produced, whereas H2’s course of has emissions of about 0.4 tons of CO2 per ton produced.

The automaker has set a goal of 2039 to decarbonize its provide chain. Different automakers are additionally looking for to scale back their carbon footprint by analyzing their provide chains, a course of that may yield enormous beneficial properties but additionally requires strict oversight and mutal buy-in. 

H2 Inexperienced Metal was based in 2020 and relies in Stockholm. It’s creating its first plant in Boden, northern Sweden.