The automotive industry is at a crossroads where sustainability and technological innovation are the keys to the future. Electric mobility is not only transforming engines, but also materials and manufacturing processes.
In this context, the alliance between Porsche and H2 Green Steel stands as a beacon of transformation towards cleaner and more environmentally friendly production.
Innovation in steel production
H2 Green Steel is set to revolutionize the steel industry from Boden, Sweden, with the promise of ultra-low-carbon steel. Starting in late 2025, the Swedish startup plans to use renewable energy to manufacture a material that could have one of the lowest carbon footprints on the market. This innovative production process uses hydrogen and electricity from renewable sources, enabling nearly CO₂-free production. According to company estimates, this could mean a reduction of up to 95 % in carbon emissions compared to the conventional method.
Porsche has committed to integrate up to 35,000 tons per year of the steel produced by H2 Green Steel starting in 2026. This step is a key component in Porsche’s commitment to achieve a carbon-neutral balance across its entire value chain by 2030. Steel, albeit in smaller proportions, remains an indispensable material for its mechanical properties, so this innovation is a significant step for the brand.
Porsche’s sustainability strategy
Barbara Frenkel, member of the Board of Management of Porsche AG, underlines the importance of CO2-reduced steel in the company’s sustainability strategy. Although Porsche has reduced the proportion of steel in its models, and is increasingly turning to aluminum for lightweight construction, steel is irreplaceable in certain applications because of its qualities. In Frenkel’s words, “Energy, processes and materials account for a significant share of CO2 emissions within the supply chain.” Porsche is therefore looking to increase the use of recycled materials and renewable electricity in both its production processes and those of its direct suppliers.
Who H2 Green Steel is
H2 Green Steel represents more than a start-up company; it is a paradigm shift in the steel industry. Founded in 2020, it is on a mission to accelerate the decarbonization of the industry through green hydrogen. With the accumulated experience of its founder, also a co-founder of Northvolt, and a commitment to reducing carbon footprint, H2 Green Steel is positioned at the forefront of the shift towards a greener industry.
Green steel is not simply a long-term goal, but a developing reality at the company’s first plant in Boden. This location is no accident; Sweden has become a center of innovation for sustainability, especially when it comes to electric mobility and clean energy production.
The collaboration between Porsche and H2 Green Steel is not only a step towards reducing carbon emissions, but also an example of how the automotive industry can and must adapt to new environmental demands. By prioritizing the use of sustainable materials and renewable energies, a new standard is set for the manufacture of electric vehicles and, ultimately, for the relationship between technology and the environment.
Electric mobility and the sustainability of the automotive industry are inextricably linked not only to innovation in vehicle propulsion, but also in the materials from which they are built. For more information on this topic and the latest developments in the sector, you could visit specialized platforms or the official H2 Green Steel website, where you can follow the progress and developments of this exciting collaboration.