Abstract:

A transition to electric vehicles in parallel with decarbonization of the power sector will help to reduce GHG emissions from transportation. However, to meet climate goals, emissions from vehicle manufacturing also require attention. Steel is the most used material by mass in vehicle manufacturing. The substantial reliance today on fossil fuels, especially coal, in the production of primary steel from mined iron ores highlights the need for new production pathways. Given the automotive industry’s substantial steel consumption, automakers may be uniquely suited to drive demand for fossil fuel-free steel and influence the steel industry transition from coal and blast furnaces. Addressing emissions associated with automotive steel manufacturing is thus essential for reducing emissions from both the steel and vehicle industries. 

This report examines the technologies and actions available to reduce the emissions associated with automotive steel manufacturing. The report discusses current steel production pathways and their associated GHG emissions. Next, it describes pathways for producing fossil fuel-free steel—interchangeably called “green” steel herein. Other modes for reducing steel-only GHG emissions in the automotive sector are also explored, including increasing the share of secondary steel produced from recycled or scrap steel material and lightweighting.