BMW Group has struck a new deal to use low carbon steel in the production of its European cars from 2026 onwards.

It has partnered with Salzgitter AG to receive steel made from hydrogen and green power, instead of coal, to cut down the carbon footprint of its production.

By 2030, the car maker has set an aim of using low carbon steel for 40% of its European plants’ demands, which would reduce carbon emissions by 400,000 tonnes each year.

Joachim Post, Board Member at BMW, said: “Our aim is to reduce vehicles’ lifecycle carbon footprint with a holistic approach. With steel, we are leading the way by sourcing low-carbon steel for our plants in Europe in the future.”

Salzgitter’s CEO, Gunnar Groebler, added: “We are delighted about the circular economy cooperation with the BMW Group and the agreement to supply green steel to our long-standing customer.”