Volkswagen AG and Vulcan Green Steel have signed a memorandum of understanding (MOU) for a low-carbon steel partnership. The partnership is one of a series of initiatives by the Volkswagen Group to expand the use of green steel in manufacturing.

The Jindal Steel Group, to which Vulcan Green Steel belongs, is an industrial conglomerate with steel, iron ore mining and energy operations as well as activities in India, Oman, Africa and Australia.

Starting in 2027, Vulcan Green Steel will produce automotive grades and other high-strength steels in Oman. Natural gas will be used in the Duqm operations during the initial years and later the operations will be switched over to green energy in a move that the company claims will cut carbon emissions by 70% once the transition is complete. The facility is currently in the construction phase and is slated to come on stream in 2026.

“Decarbonizing supply chains is a decisive factor for the Volkswagen Group on the road to carbon neutrality.''

Dirk Große-Loheide, member of the board of management of the Volkswagen brand responsible for procurement, and member of Volkswagen AG’s Extended Executive Committee

''Decarbonizing supply chains is a decisive factor for the Volkswagen Group on the road to carbon neutrality. Wewant to achieve this goal by 2050 at the latest, and using low-carbon steel is an important step in this direction.Green steel will help us make supply chains at Volkswagen even more environmentally friendly going forward,” DirkGroße-Loheide, member of the board of management of the Volkswagen brand responsible for procurement, and member of Volkswagen AG’s Extended Executive Committee.