Nissan-Green-Steel
Cleaner cars, greener manufacturing, and a future with slashed emissions? Nissan is driving straight for it in its mass-produced automobiles. The Japanese automotive giant has set its sights on a massive fivefold increase in the use of green steel by the end of fiscal year 2025, compared to 2023 levels, as reported in a recent press release. Given the emissions-heavy nature of steelmaking, ramping up green steel adoption in Japan is one of the most significant levers Nissan can pull to cut its environmental footprint.
The push for green steel is a key piece of Nissan’s broader commitment to reduce carbon emissions by 30% across the entire product lifecycle and reach carbon neutrality by 2050. Expanding its use in Japan is vital to this decarbonisation effort, particularly in material sourcing.
Expanding Nissan’s Green Steel Network
Nissan took its first step toward green steel in 2023, sourcing Kobenable Steel from Kobe Steel for the Japanese market. In addition, Kobe Steel will supply aluminium sheets made from raw materials made from green aluminium to further increase its reliance on low-CO2-emission aluminium. The company plans to broaden its green steel supply through strategic alliances with major steel producers, including:
- Nippon Steel Corporation – NSCarbolex Neutral
- JFE Steel Corporation – JGreeX
- POSCO materials – carbon-reduction allocated steel
These partnerships employ a mass-balance approach to reduce CO2 emissions during production while maintaining the durability and performance expected from automotive-grade steel.
Why Green Steel Matters
The automotive industry is a top consumer of steel globally, making up around 60% of a vehicle’s weight and accounting for an estimated 7–9% of global greenhouse gas emissions. Traditional steel production methods rely on carbon-intensive blast furnaces, releasing significant amounts of CO2 when reducing iron ore. In contrast, green steel is produced using lower-carbon processes—such as low-carbon-reduced iron or the transition from blast furnaces to electric arc furnaces.
It is worth noting Nissan’s dedication to sustainability extends beyond integrating green materials into its supply chain, reflecting a bold vision for a safer, cleaner, and more inclusive future. The company is advancing in several strategic areas:
- Battery innovations for cost-competitive and more efficient EVs, including solid-state and related technologies
- Greater energy efficiency of e-POWER electrified powertrains
- Development of a battery ecosystem to support decentralized renewable energy generation
With plans to electrify all new vehicles in key markets – Japan, China, the U.S., and Europe – by the early 2030s, Nissan is positioning itself as a leader in driving the global transition to electric mobility. Locally, the e-POWER technology is expected to be available in upcoming Nissan models.
Living In The Era Of Green Manufacturing
If scaled effectively, green steel has the potential to transform not only the automotive sector but a range of industries dependent on steel. Nissan is ahead of the curve, integrating sustainable materials and innovative practices for resilient manufacturing to contribute to a cleaner, more sustainable future.
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