Volkswagen AG is expanding its decarbonization partnership with Georgsmarienhütte GmbH, a subsidiary of GMH Gruppe, by sourcing the new Green Power Premium Steel starting in 2025.

This CO2-reduced steel will be used in Volkswagen’s in-house production of transmission parts. Produced in an electric arc furnace using 100% renewable electricity and biogenic coal, the material reduces the carbon footprint by up to 98% (Scope 1 and 2) compared to conventional blast furnace-based steel.

GMH Gruppe CEO Dr. Alexander Becker said that the product sets new standards in the steel industry. This new agreement builds on the companies' existing circular economy partnership, for which GMH was named Volkswagen’s most sustainable supplier in 2023.