MATERIALS TRANSFORMED // Metals industry, vehicle builders work together to use and reuse high quality scrap to create sustainable, low-carbon supply chain

Above: thyssenkrupp Steel is shipping its Bluemint brand of steel products to BMW’s assembly plant in Hungary for use in series production

May. 2026- Global brands such as Volvo, Volkswagen and BMW have linked arms with producers and processors of steel, aluminum and copper; with multinational metallurgical research institutions; and with government agencies. Their mutual goals are to create circular pipelines of low-carbon products that eliminate waste, reduce carbon emissions, increase resource efficiency, and protect and satisfy consumers. We have outlined a few such projects announced in the last several months. Many more collaborative projects were launched earlier, of course, and will continue to achieve positive outcomes.

LIFECYCLE

In March, Novelis Inc. produced the world’s first aluminum coil made entirely from 100 percent recycled, end-of-life automotive scrap. This breakthrough marks a significant step toward greater circularity and sustainability in the automotive industry.

This pilot material is suitable for car body outer skin applications, meeting the highest requirements for surface quality and formability. The scrap for the automotive aluminum coil was sourced through the Automotive Circularity Platform, initiated in partnership with thyssenkrupp Materials Services.

The open platform aims to streamline access to high-quality end-of-life material for recycling by digitalizing the market for secondary materials, enhancing supply chain efficiency and maximizing material recovery from vehicles no longer in use.

Automotive customers want decarbonized products “while keeping them light, safe and affordable, and that’s why they turn to us,” said Michael Hahne, vice president and general manager, automotive, for Novelis Europe. “Producing aluminum from 100 percent endof-life vehicle scrap showcases the potential for significant environmental benefits and the ability to meet the high-performance demands of modern automotive production.”

Novelis is working to expand the adoption of this technology, enabling automakers to incorporate higher recycled content into future vehicle designs.

ULTRA-STRONG STEELS

A consortium—consisting of Tata Steel Nederland, Volkswagen Group, RWTH Aachen University, the National Center for Metallurgical Research CENIM (Spain), RISE Research Institutes of Sweden and the French Corrosion Institute—reported progress in the development of new zinc-coated, ultra-strong steels specifically designed for automotive crash structures.

The project, called “Warm press-formed zinc-coated third-generation advanced highstrength steels with high crash and corrosion resistance and minimized microcracking (WarP-AHSS),” aims to improve passenger safety and support more sustainable steel production.

Ultra-strong steels used in automotive crash structures are hot-formed at very high temperatures at which the zinc coating on the steel can melt, resulting in cracking. To prevent that, automakers often use aluminum‑silicon coated steels, which can withstand high temperatures but offer lower corrosion resistance.

“By developing this new high‑quality steel grade, we address these limitations,” says Radhakanta Rana, metallurgist at Tata Steel Nederland and project leader of WarP‑AHSS. “The benefits go beyond energy savings.

By combining ultra‑high strength with exceptional in‑service formability, these new steels can absorb significantly more crash energy. This reduces the effect of a collision and increases passenger safety.”

A zinc coating, processed at lower temperatures, eliminates the need for additional processes such as sandblasting and provides improved corrosion resistance. This leads to a simpler, more efficient production process, less maintenance, and lower production costs for automakers.

Christina Sunderkötter, project manager for sustainability solutions at Volkswagen Group, says the goal is to create “a steel solution that meets the requirements of future vehicle production: better safety performance, simpler manufacturing processes and lower part‑making costs.”

LOW CARBON

A manufacturer of lightweight automotive components, Monterrey, Mexico—based Nemak S.A.B. de C.V., signed a letter of intent March 19 with Hydro, a Norwegian aluminum producer, to advance low‑carbon aluminum solutions.

By incorporating more post‑consumer scrap into the production process, Nemak and Hydro will enhance circularity and reduce the carbon footprint of the foundry alloy aluminum products delivered to Nemak.

The long‑term goal is to develop aluminum solutions qualified for automotive applications with a reduced CO₂ footprint, contributing to the industry’s transition toward net zero. This will be driven by two strategic decarbonization efforts led by Hydro: using more post‑consumer scrap and transitioning to cleaner energy sources, including natural gas and electrical boilers, at Hydro’s Alunorte alumina refinery.

Nemak and Hydro have worked together for over 20 years to deliver high‑quality foundry alloy products to carmakers globally. They’re now seeking to incorporate more recycled post‑consumer scrap into the primary foundry alloy product portfolio.

Currently, 40 percent of Nemak’s aluminum volume in Europe is sourced from Hydro. The two companies will also join efforts in research and development to drive innovation in the next generation of automotive casting alloys.

“Nemak is at the forefront of delivering lightweighting solutions and aluminum is one of the most effective ways to improve the energy efficiency of electric and hybrid vehicles.

Through our collaboration with Hydro, we are enhancing our lightweighting solutions to drive sustainable mobility forward,” says Nemak CEO Armando Tamez.

VERIFIED CONTENT

In February, thyssenkrupp Steel began shipping its Bluemint brand of steel products— which is verified by an independent expert in sustainability— to BMW Group for use in series production, in particular for the outer panels battery housing and some interior parts of the BMW iX3 model.

Bluemint recycled steel offers identical properties to conventional steel and meets the highest quality and safety requirements without any adaptations in production, according to thyssenkrupp.

Bluemint steel has a high proportion of recycled material and achieves CO₂ savings verified by TÜV Süd, compared to conventional steel.

To this day, the automotive industry uses almost exclusively primary steel extracted from iron ore for outer body shells, especially for O5 components with particularly high surface quality. Due to its high degree of purity and low exposure to undesirable accompanying elements, blast furnace produced steels also meet the highest requirements in terms of surface quality, formability and processing.

Bluemint is still produced using blast furnaces, but the iron ore is replaced by a specially processed scrap product. is reduces the use of coking coal and cuts CO₂ emissions depending on the grade and processing, without compromising formability or surface quality.

Georgios Giovanakis, chief sales officer at thyssenkrupp Steel, explains, “With Bluemint, BMW Group has access to a CO₂-reduced steel product that meets the highest quality requirements and can be used directly in series production. e fact that Bluemint steel is used for both outer panel components and battery housings shows the great potential of CO₂-reduced steel.”

CIRCULARITY

RESEARCH PARTNERSHIP FORMED

Advances in aluminum recycling that can help secure U.S. supply chains are the focus of a five-year, $2.5 million research partnership between the University of Michigan and Norway’s Hydro. The aluminum producer opened a $150 million recycling plant in Michigan in 2023 as part of a push to expand its U.S. manufacturing capabilities.

This collaboration, formed last October with the university’s College of Engineering, establishes the Center for Recycling, Extrusion and Aluminum Technology, or the CREATe Partnership. It builds on an effort already underway, funded by the U.S. Department of Energy, to establish a Midwest circular economy in automotive aluminum.

“This partnership brings together top minds in materials science and manufacturing to expand what’s possible in recycling aluminum,” says Karen A. Thole, a dean of engineering at the University of Michigan.

Eivind Kallevik, president and CEO of Hydro, says, “Industrial progress happens when industry and science work together to develop new solutions. I look forward to seeing this collaboration drive new advances in aluminum recycling and alloy innovation.”

COPPER FOIL

Volta Energy Solutions Canada was selected in December 2025 to receive about CAD $194 million from the Korean Ministry of Economy and Finance to support the creation of a battery copper foil production facility, now under construction in Granby, Quebec.

The company is a subsidiary of Korea-based Solus Advanced Materials, which produces materials for the electric vehicle and display industries.

Volta also raised additional funds through a syndicated loan from the Export-Import Bank of Korea and the Korea Development Bank, totaling CAD $416 million.

Volta expects to start up production in the second half of 2026. Annual production capacity initially will be 25,000 tons, gradually expanding up to 63,000 tons as soon as 2027.

Solus Advanced Materials seeks to follow the EV manufacturing industry by entering North America. In 2019, the company shipped its first battery copper foil from its Hungarian plant, Europe’s only battery copper foil production base, and in 2022, broke ground in Quebec.

Copper, a key material for battery copper foil, was recently designated as a critical material for national security purposes in several countries, including the United States and Canada. Battery companies are increasingly recognizing the need to secure stable local suppliers to mitigate supply chain risks. 

“Based on our high value-added products and technologies, we will strengthen our competitiveness in major global markets and contribute to stabilizing the supply chain of the North American electric vehicle industry,” a Solus executive stated.

CLOSING THE LOOP

Volvo Cars and Salzgitter AG have launched a closed-loop partnership. Salzgitter supplies the Volvo Cars body parts factory in Olofström, Sweden, with flat-rolled steel products, and has begun to offtake considerable quantities of the steel scrap produced at the Volvo plant and return it directly to the melt shop at Salzgitter in Germany.

The project, called ScanLoop, segregates steel and aluminum trimmings from the stamping process into different material streams and tightly compacts them into cubes.

Rather than having empty railcars returning from Volvo to Salzgitter, the hoppers are filled with scrap that is remelted and processed into high-quality steel grades. The first train with 25 gondolas filled with scrap moved in early February.

Sandrina Sieverdingbeck, managing director of DEUMU Deutsche Erz- und Metall-Union, says, “The cooperation is a clear confirmation of our circularity strategy. It shows how industrial partnerships can contribute to resource efficiency and the decarbonization of the value chain.” 

 

 

 

 

 

 

 

 

 

 

 

Home page horizontal banner 4