Nissan plans to increase the use of green steel in Japan by 5 times

Japanese automaker Nissan Motor plans to significantly increase the use of green steel in its production operations in Japan. By the end of fiscal year 2025, the use of low-carbon steel will increase by about 5 times compared to the level of 2023, the company said in a press release.

This initiative is part of Nissan’s broader strategy to reduce carbon dioxide emissions at all stages of the vehicle life cycle. The manufacturer aims to reduce CO2 emissions by 30% by 2030 and achieve carbon neutrality by 2050. One of the key steps is to step up decarbonization efforts already at the stage of purchasing materials.

Nissan notes that steel production is one of the largest sources of industrial CO2 emissions due to the traditional blast furnace process of iron smelting. “Green steel helps to reduce these emissions by using direct reduced iron with a low carbon footprint or switching from blast furnaces to electric arc furnaces. Since steel components make up about 60% of a vehicle’s weight, increasing the share of green steel is an important step towards carbon neutrality, the automaker explains.

Since 2023, Nissan has been the Japanese automotive market leader in the introduction of green steel, using Kobenable Steel from Kobe Steel. Now the company is expanding its cooperation by adding Nippon Steel (NSCarbolex Neutral), JFE Steel (JGreeX) and South Korea’s Posco (Carbon Reduction Allocated Steel) to its suppliers.

According to EUROFER forecasts, car production in the EU is expected to grow by 2.1% y/y in 2025 after falling by an expected 8.4% y/y in 2024. Weak demand, economic uncertainty, and delays in the development of infrastructure for electric vehicles remain the main obstacles to growth. The situation in global markets, particularly in the US and China, as well as increased competition from Chinese electric car manufacturers will be a decisive factor for European automakers.