Schaeffler is intensifying its collaboration with Swedish startup H2 Green Steel. This strategic partnership aims to redefine the steel industry through innovative green practices and advanced technologies.
The recent equity funding round saw Schaeffler invest an additional 65 million euros, marking a substantial increase that takes its total stake in H2 Green Steel to an impressive 100 million euros. This commitment represents the most significant equity investment Schaeffler has ever made in a minority stake in another company.
A shared vision for a sustainable future
At the heart of this partnership is a shared vision for sustainability. Schaeffler, as a strategic technology partner of H2 Green Steel, is set to leverage its expertise in motion technology to pioneer new steel products, including green e-steel tailored for electromobility. The collaboration will extend further into the development of sustainable rolling bearing solutions for production processes, promoting efficiency and reducing environmental impact.
The integration of cutting-edge components and condition monitoring solutions is set to optimize production processes, offering a glimpse into the future of sustainable steel manufacturing. Both companies are poised to benefit from each other’s proficiency in digitalization and circular economy practices.
A transformative investment for decarbonization
Klaus Rosenfeld, Chief Executive Officer of Schaeffler AG, underlined the significance of this partnership in the context of achieving sustainability across the entire value chain. He emphasized the commitment and determination required from strong partners to drive forward the global transformation of the steel industry and reduce CO₂ emissions.
Schaeffler’s mission aligns with its goal of becoming completely climate-neutral by 2040, including a 25 percent reduction in supply chain emissions by 2030. As one of the world’s largest consumers of steel, Schaeffler recognizes the crucial role of green steel in decarbonizing its supply chain. The steel sourced from H2 Green Steel boasts up to 95 percent fewer embodied CO₂ emissions than conventionally produced steel, making it a key lever for achieving sustainability targets.
Andreas Schick, Chief Operating Officer of Schaeffler AG, emphasized the centrality of steel in their decarbonization strategy. He highlighted the pride in Schaeffler being the world’s first tier 1 supplier collaborating with H2 Green Steel as a strategic technology partner, describing it as a sustainable, long-term investment in a critical material category.