ESG Today writes that this marks the latest agreement in Mercedes-Benz's efforts to reduce its carbon output per vehicle from the use of steel in its Alabama factory. Steel Dynamics and H2 Green Steel are two other steelmakers that the German car brand already collaborates with.

Mercedes-Benz officials said they look to achieve a fully decarbonized steel supply chain from 2039 at the latest, while also targeting an 80% reduction in production-related emissions by the next decade.

Many of the German carmaker's SUVs, such as the GLE and the all-electric EQS and EQE are being manufactured at the Tuscaloosa plant in Alabama and currently, the steel used to make these vehicles has around 70% recycled contents in its composition.

Nucor manufactures steel from scrap material in an electric arc furnace powered by 100% renewable energy and thus, the company is able to reduce its greenhouse gas output by over 60% compared to the global average in the industry.