VW Group To Procure Low-Carbon Steel From Jindal's Vulcan Green Steel

In a significant move towards sustainable manufacturing, the Volkswagen Group has signed a memorandum of understanding (MoU) with Vulcan Green Steel for the production of low-carbon steel. This marks a crucial step in Volkswagen's green steel strategy and reflects the automotive giant's commitment to reducing its carbon footprint.

The partnership with Vulcan Green Steel is part of a broader initiative by the Volkswagen Group to increase the use of environmentally friendly steel in its production processes. This move builds upon existing collaborations, including a partnership with Salzgitter AG established in 2022 and an investment in Swedish green steel manufacturer H2 Green Steel through Volkswagen's subsidiary, Scania.

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Vulcan Green Steel, a part of the diversified Jindal Steel Group, is set to begin production of automotive-grade and high-strength steel in Oman starting in 2027. The company's Duqm operations will initially use natural gas before transitioning to green energy sources. This shift is expected to reduce carbon emissions by 70 per cent upon completion.

The facility, currently under construction, is scheduled to commence operations in 2026. This timeline aligns with Volkswagen's aggressive sustainability goals and positions the automaker at the forefront of green manufacturing in the automotive sector. The collaboration also highlights the automotive industry's broader shift towards sustainable practices, with major players like Volkswagen leading the charge in adopting green technologies across their supply chains.