EAF Steel: Driving the Future of Automotive Production

As the automotive industry evolves, original equipment manufacturers (OEMs) and steelmakers continue to partner to improve sustainable practices in production processes. Since steel production accounts for approximately 7% of global CO₂ emissions and the automotive industry accounts for 12% of global steel consumption (IEA Global Energy and Climate Model, 2024), decarbonization is critical for the future advancement of the industry.

OEMs have traditionally relied on traditional blast furnace-basic oxygen furnace (BF-BOF) steelmaking methods, but many automakers are turning to recycling-based electric arc furnace (EAF) steelmakers to decarbonize their fleets and meet sustainability targets. EAFs rely on a circular process that uses electricity to melt scrap and other inputs into new, high-quality steel.

How can EAF steel play a role in the future of automotive manufacturing?

Sustainability Goals and Initiatives in the Automotive Industry

Automotive companies worldwide are responding to growing demands from governments, investors and consumers to reduce their emissions through sustainable production practices. As regulations tighten and market expectations shift, automotive manufacturers are exploring alternative materials and production methods to lower their environmental impact while maintaining performance.

For example, emissions reduction continues to be a focal point of selecting partners for upstream and downstream activities, so market leaders are being transparent in implementing initiatives and targets to demonstrate their goals.

A sampling of automakers’ sustainability goals:

• General Motors is an American automotive manufacturer that aims to be carbon neutral by 2040 and use 100% domestic renewable energy by 2025.
• European manufacturer BMW has goals to reduce total life cycle CO₂ emissions by 40% by 2030 (from 2020), for their business to be climate neutral by 2050, and to increase their vehicles’ recycled content through a “Secondary First” circular approach.
• Headquartered in Asia, automaker Honda set a goal to be net zero by 2050 through a “Triple ZERO 2050 Vision,” including net zero product emissions, 100% carbon-free energy, and 100% sustainable materials.

Since steel makes up a significant portion of automakers’ ongoing purchasing needs, selecting suppliers who manufacture low-embodied carbon steel can significantly impact their overall emissions. By sourcing EAF steel, OEMs reduce the carbon intensity of their supply chain, contributing to lower lifecycle emissions for each vehicle produced.

Nucor’s closed-loop recycling process starts and ends at our steel recycling facilities.

As a certified producing member of the Global Steel Climate Council (GSCC), Nucor is a leader in sustainable steelmaking and is committed to transparency in greenhouse gas (GHG) reporting. Our circular EAF steelmaking process even includes the use of industrial scrap from OEMs or other manufacturers to reduce waste, resulting in closed-loop recycling to produce new steel for automobiles and other applications.

Overcoming Misconceptions of EAF Steel for Automotive Manufacturing

There is a common misconception that coking coal-based blast furnace (BF-BOF) steel is the only option capable of meeting the automotive sector’s demanding quality standards for key vehicle components. This belief has often been the reason for relying on BF-BOF steel production, even as the automotive industry faces increased demand to decarbonize.

While this assumption was valid in the early days of EAF steelmaking, it no longer reflects current capabilities. Today, steel produced using electric arc furnaces is capable of meeting automotive quality and performance requirements.

Low-embodied carbon EAF steel reduces emissions impact and can meet or exceed standards for new vehicle platforms.

In fact, EAF steel has been successfully implemented into various vehicle components, including steel sheet for exposed exterior body panels. Today, Nucor can compete with BF-BOF on most grades, geometry and surface characteristics.

The Road to Reducing Emissions in the Steel Supply Chain

Ongoing research and development in EAF steelmaking enables continual advancement for the steel industry and all the industries it serves.

To learn about the history, production and benefits of EAF steelmaking, read the Circularity in Steel series.

Recent EAF advancements include:

• Econiq™ certified low-embodied carbon steel and the world’s first net-zero carbon steel at scale.
• Technological improvements in scrap processing and recycling have maximized recyclability and improved metallurgical processes for high-quality steel outputs.
• Market-leading capabilities in EAF automotive sheet steel, cold-rolled steel, dual phase (DP) steel, complex and multi-phase steel, high-strength low-alloy (HSLA) steel, and a variety of other in-demand automotive grades.
• Investments in new facilities and technology to meet the future needs of the industry, including capabilities to manufacture advanced high-strength steel (AHSS), new galvanizing coating lines, and more using EAF technology.

What is next for EAF automotive steel?

EAF steelmaking continues to prove capable of competing with or exceeding standards compared to BF-BOF products, so when it comes to lowering embodied carbon for automotive platforms, EAF is the answer.

With 25 years of experience in automotive steel, including advanced automotive grades, Nucor is poised to supply the steel needed to drive the future of automotive. As North America’s largest steel manufacturer and the most capable EAF producer of automotive steel, Nucor helps automakers meet sustainability goals. We partner with major automakers to develop innovative low-embodied carbon steel solutions. Our commitment to excellence has enabled Nucor to earn awards from GM, Honda, Nissan and Volkswagen, to name a few.

The Nucor automotive group has a strong track record of partnering with our customers to achieve unprecedented results in record timeframes. Our robust network of R&D specialists across North America ensures our customers receive custom-engineered solutions to meet their specific goals. Our relentless pursuit of higher-strength, lighter-weight steel solutions across all product lines allows for more efficient and safer auto designs in the future.

Learn more and get in touch with the Nucor automotive experts today: Nucor Automotive Solutions