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Chery and Shougang launch 55% recycled steel auto parts in industry first

Chery and Shougang have unveiled the first production parts made from 55% recycled steel, cutting CO2 emissions by up to 50% and marking a step toward greener manufacturing.

Chinese automaker Chery and steelmaker Shougang have jointly launched the industry's first automotive components made from 55% recycled steel, according to Gasgoo. The parts were officially unveiled at Chery's Longshan testing center on October 13, moving high-recycled-content steel from research to mass production.

The 55% recycled steel uses a globally first-of-its-kind process called “converter large scrap ratio steelmaking,” which can reduce carbon emissions by up to 50%, Gasgoo reported. Each ton of recycled steel used cuts CO2 emissions by about 1.2 tons and reduces iron ore consumption by about 1.6 tons, while also lowering wastewater, waste residue, and exhaust emissions by up to 36%, 46%, and 41%, respectively.

Performance and safety standards maintained

Chery said the 55% recycled steel has passed validation and can be used in all critical components, including body panels and structural parts, while meeting safety and quality standards. The material's performance remains stable despite the higher recycled content, ensuring that green manufacturing does not compromise vehicle integrity.

The collaboration is part of Chery's broader push to create a closed-loop system covering material sourcing, manufacturing, use, and recycling. The company has published a carbon neutrality roadmap, aiming to cut greenhouse gas emissions per vehicle by 60% by 2030 compared with 2023 levels, achieve carbon neutrality in its own operations by 2037, and reach full value-chain carbon neutrality by 2047.

Green credentials for global markets

Chery also highlighted that 100% of its models on sale now have their carbon footprint assessed, and the JAECOO 7 has received China's first “China-EU carbon footprint data mutual recognition” certificate, which could ease entry into markets with strict environmental regulations.

The two companies said they will continue to collaborate on advanced automotive steel, low-carbon materials, and manufacturing processes, balancing emissions reduction with product quality and cost.