News Room - Business/Economics

Posted on 10 Feb 2025

Nissan Motor has announced plans to significantly expand the use of green steel in its Japanese production operations.

The automaker aims to increase its usage of low-carbon emission steel to roughly five times the 2023 level by fiscal year 2025, as part of its broader strategy to reduce carbon emissions across its vehicle lifecycle.

The move aligns with Nissan’s broader sustainability strategy, which targets a 30% reduction in CO2 emissions across the entire vehicle lifecycle by 2030 and aims for carbon neutrality by 2050. To achieve this, the company is strengthening its decarbonisation efforts from the material procurement stage.  

Steel production is a major source of industrial CO2 emissions, primarily due to the blast furnace process used to reduce iron ore, the automaker says in a statement.

Green steel mitigates these emissions by replacing iron ore with low-carbon direct reduced iron or shifting from blast furnaces to electric arc furnaces. Given that steel components account for about 60% of a vehicle’s weight, increasing the use of green steel is a critical step in Nissan’s carbon neutrality roadmap, it adds.

Since 2023, Nissan has led the Japanese automotive industry in green steel adoption, initially using Kobe Steel’s so-called Kobenable Steel. Now, the company is further scaling up by incorporating green steel procured from Nippon Steel, JFE Steel and Posco, Kallanish notes.

Source:Kallanish