Mercedes-Benz and Stegra secure supply deal.

By using a new, innovate manufacturing process, the production of steel at the Stegra production site has a carbon footprint of around 0.4t CO₂/t steel. By contrast, steel produced using a classic blast furnace emits, on average, more than 2 t CO₂/t steel. In the new process, the supplier uses hydrogen and electricity from renewable energy sources instead of coking coal in steel production. The hydrogen acts as a reduction gas, which releases and binds the oxygen from the iron ore. Unlike the use of coking coal, this does not produce CO₂, but water vapor.

Mercedes-Benz has strategically established partnerships to help decarbonise its supply chain. Already today, the brand with the three-pointed star has introduced low-carbon steel, made from recyclate, into four series models. Moreover, Mercedes-Benz already sources aluminium made using electrolysis powered by renewable energy for selected components used in series productions with a carbon footprint more than 70 percent lower than the global average. Mercedes-Benz and Stegra agreed to collaborate on levers to increase the recyclate content accordingly.

In addition to consequently reducing CO₂ emissions, the company is committed to the application of certificates and standards, for example our Responsible Sourcing Standards. Mercedes-Benz and Stegra collaborate on strengthening human rights due diligence across the steel supply chain. Mercedes-Benz is a member of the Responsible Steel Initiative and is actively involved in the development of a certifiable sustainability standard for the steel industry.

This article was last updated in September 2026.