Environment Minister Calls German Car Makers to Source More Steel From Germany

Environment Minister Calls German Car Makers to Source More Steel From Germany

Bundesumweltminister Carsten Schneider, a member of the SPD, urged German automakers to source more raw materials within the country. “We can already expect a bit more site‑patriotism from the companies” Schneider told the “Frankfurter Rundschau”.

He stressed that Germany still needs a fully functioning domestic steel industry to remain independent and strong. For that reason, he sees state support for firms like Thyssenkrupp on their decarbonisation path as essential. “That’s why I am in favour of buying preferentially from European suppliers” he said.

Schneider rejected proposals to import steel pre‑products from places such as Saudi Arabia-where energy costs are low-and then only finish them in Germany. Instead, he supports flagship projects that produce steel using green hydrogen. “It is encouraging that the rail sector is now buying green steel from Europe for its tracks. The same could apply to cars, although automakers are still cautious” he added.

Acknowledging that some in the industry are reluctant, Schneider said he wants to create new incentives. “For instance, firms that intend to bring plug‑in hybrids to market after 2035 can offset the extra emissions by using green steel in their production. That is the position Germany is taking in Brussels. I know it may not please everyone in the sector” he concluded.