Schaeffler and H2 Green Steel strengthens cooperation

Herzogenaurach, Germany- Schaeffler AG., and the Swedish startup H2 Green Steel have made the decision to strengthen their existing close alliance. The two businesses reached their agreement during a recent equity investment round in which Schaeffler decided to contribute an additional 65 million euros, a sizeable increase that brings its total stake to 100 million euros. The amount invested by Schaeffler into a minority ownership in another company is the most it has ever been. Schaeffler will apply its expertise to the development of innovative steel products, such as green e-steel for electromobility, as a key technological partner of H2 Green Steel. Additionally, the two businesses will work together to create new production-related applications for sustainable rolling bearing solutions. The utilization of premium components and integrated condition monitoring technologies is intended to optimize production efficiency. Additionally, the two businesses will gain from one another's expertise in digitalization and the circular economy.

Klaus Rosenfeld, Chief Executive Officer of Schaeffler AG said, “Achieving sustainability across the entire value chain requires cooperation between strong partners who are willing to move forward together with commitment and determination. Schaeffler and H2 Green Steel are both pioneers with true innovative power, and we are now synergizing these strengths even further. The increased capital stake and the strategic technology partnership follow the off-take agreement of 2021 as the next logical step as our two organizations seek to work together even more closely. Together, we are making a significant contribution to the global transformation of the steel industry and the reduction of CO₂ emissions.”

By the year 2040, Schaeffler wants to achieve total carbon neutrality. The company's 2030 goals include reducing emissions from its supply chain by 25% (Scope 3 upstream) and achieving climate neutrality in its own production operations (Scopes 1 and 2). Schaeffler is methodically focused on decarbonizing the commodities it utilizes the most, including steel in particular, in order to meet these lofty goals. Over 7,000 tons of steel, or roughly the weight of the Eiffel Tower, are processed by the company each working day. The benefit of buying green steel from H2 Green Steel is that it has up to 95% fewer embodied carbon dioxide emissions (Scope 3 upstream) than traditional steel made through the blast furnace route.

Andreas Schick, Chief Operating Officer of Schaeffler AG said, “For Schaeffler, steel is the decisive lever for decarbonizing our supply chain. The partnership with H2 Green Steel takes us a long way towards our target of climate neutrality. We are proud to be the world’s first tier 1 supplier to be working with H2 Green Steel as a strategic technology partner. This is a sustainable, long-term investment in Schaeffler’s network for this vitally important category of materials.”