Schaeffler invests in H2 Green Steel

As a strategic investor, the German automotive supplier wants to secure access to green steel from the start-up.

Automotive supplier Schaeffler is investing in the start-up H2 Green Steel and simultaneously entering into a technology partnership with the company. The company made the investment as part of a recent financing round. Schaeffler led the round together with AMF, GIC and existing investor Altor Fund V. In total, H2 Green Steel raised 190 million euros in its current round.

Founded in 2020, the Swedish startup aims to produce steel in a carbon-neutral way using green hydrogen produced from renewable energy sources such as wind power and sell it to Germany, among other countries. According to the start-up, the steel industry has so far been one of the world's biggest carbon dioxide emitters. With its green steel, the start-up now wants to launch a "clean industrial revolution."

"Securing and sustainably shaping supply chains is a top priority for Schaeffler," says Andreas Schick, Chief Operating Officer Schaeffler. By investing in H2 Green Steel, the company aims to secure long-term supplies of green strip steel. "Together, we will contribute to the decarbonization of supply chains."