H2 Green Steel agrees to supply product to automotive technology company ZF

Sweden-based industrial startup H2 Green Steel (H2GS) has signed a seven-year binding agreement with ZF, a Germany-based supplier to the global automotive industry. The companies say deliveries of H2GS’ near zero emissions steel are set to begin in 2026.

ZF says it directly and indirectly processes around 2.5 million tons of steel per year worldwide. The company, founded in 1915, is a global technology company supplying mobility technology for passenger cars, commercial vehicles and other industrial applications. It has around 165,000 employees at 168 production locations in 32 countries.

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ZF adds that its agreement with H2GS covers a significant share of its yearly steel volumes, making it strategically important to the company’s efforts to decarbonize its operations. The company aims to be climate neutral by 2040, including value chain emissions. The agreement with H2GS, valued at 1.5 billion euros ($1.63 billion U.S.), is expected to reduce CO₂ emissions by close to 2.3 million tons compared to traditional steelmaking processes.

“No one can fight climate change alone, but teaming up with partners, we can achieve a lot,” ZF Board of Management member Stephan von Schuckmann says. “H2 Green Steel is a good example of startups working together with established players to drive change faster than the incumbent industry has managed. For ZF, this is a strategic agreement in our significant efforts to reduce CO₂ emissions from our supply chain.”

Per the agreement, H2GS also will work closely with ZF’s sub-suppliers, with the goal of driving the steel industry’s transformation as an integrated approach in the entire supply chain.

“This is a true milestone contract for H2 Green Steel, not the least because of its size,” H2GS CEO Henrik Henriksson says. “ZF’s role in the automotive ecosystem is undeniable and they are a true partner to us where we also see potential to move into other regions, like North America.”

H2GS was launched in 2021 to accelerate the decarbonization of hard-to-abate industries, starting with steel. The company previously has announced supply agreements with Cargill Metals and Mercedes-Benz AG.