Steel body announces environmental impacts of materials decisions in Vehicle GHG Emissions

Published: May 24, 2016 11:28
The Steel Market Development Institute (SMDI), a business unit of the American Iron and Steel Institute (AISI), announced results of a study.

UNITED STATES May 23 2016 4:40 PM

NEW YORK (Scrap Register): The Steel Market Development Institute (SMDI), a business unit of the American Iron and Steel Institute (AISI), announced results of a study, “The Importance of the Production Phase in Vehicle Life Cycle GHG Emissions.” The study shows the material production phase accounts for a significant portion of overall vehicle life cycle emissions; therefore, it must be considered as part of any overall regulatory program to reduce vehicle emissions.

The study compared greenhouse gas (GHG) emissions of advanced high-strength steel (AHSS) and aluminum sedans, trucks, SUVs and alternate-fuel vehicles. This study showed AHSS-intensive vehicles to have lowest total GHG emissions. Results also showed materials production accounts for nearly 20 percent of total GHG emissions for internal combustion engine vehicles, and as much as 47 percent for battery electric vehicles.

“Many studies on vehicle life cycle emissions have been completed in the auto sector, with varying results,” said Lawrence W. Kavanagh, president of SMDI. “We elected to test the sensitivity of input parameters, and when we applied credible, transparent and independently verifiable parameters, the AHSS vehicles had lower life cycle emissions in all vehicle classes. When we opened up the parameters to conditions more favorable to aluminum, the steel-intensive vehicles had lower life cycle emissions in approximately 70 percent of the cases.”

“Our study shows the difference in life cycle emissions is a few percentage points when comparing single vehicles,” Kavanagh continued. “The more significant point is the difference in production emissions for steel and aluminum - production of aluminum is four to five times more emissions intensive than production of steel in North America.”

“We need to look beyond the tailpipe when considering vehicle regulation,” said Dr. Jody Hall, vice president —automotive market for SMDI. “It is clear the only way to assure vehicle regulations result in a decrease in emissions is when new vehicles have lower combined production and tailpipe emissions than the vehicles they replace.”

The study also concluded that, in the future, as fuel economy increases driving emissions will decrease making production emissions even more significant.

“Production emissions from competing materials can be up to 20 times higher than steel, and therefore should be accounted for,” said Hall. “When we scaled the single vehicle results to an entire annual fleet, the results showed a net increase of GHG emissions of about 4 to 40 million metric tons depending on vehicle segment and overall volume.”


Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
UBS Sees Medium-Term Support for PGMs, Highlights Valterra as Preferred Producer
14 hours ago
UBS Sees Medium-Term Support for PGMs, Highlights Valterra as Preferred Producer
Read More
UBS Sees Medium-Term Support for PGMs, Highlights Valterra as Preferred Producer
UBS Sees Medium-Term Support for PGMs, Highlights Valterra as Preferred Producer
[SMM Express] UBS has identified improving medium-term prospects for platinum group metals (PGMs), citing constrained primary supply, ongoing industry restructuring and stronger-than-expected demand from hybrid vehicles. Although PGM prices have softened in recent months amid weaker investor sentiment and demand concerns, the bank expects supply-side constraints to provide underlying support to the market. The investment bank noted that hybrid vehicle adoption could sustain autocatalyst demand for platinum, palladium and rhodium for longer than many market participants currently anticipate. While PGM prices are expected to remain range-bound in the near term, improving market fundamentals could support a gradual recovery. Against this backdrop, UBS named Valterra as its preferred PGM mining investment, highlighting the company's strong balance sheet, high-quality asset portfolio and leverage to a potential recovery in metal prices. The bank believes producers with resilient operations and financial strength are best positioned to benefit as supply tightens and market conditions improve.
14 hours ago
Umicore Reports Strong H1 2026 Performance as Recycling Division Drives Earnings
14 hours ago
Umicore Reports Strong H1 2026 Performance as Recycling Division Drives Earnings
Read More
Umicore Reports Strong H1 2026 Performance as Recycling Division Drives Earnings
Umicore Reports Strong H1 2026 Performance as Recycling Division Drives Earnings
[SMM Flash] Belgium-based materials technology and recycling company Umicore reported a strong first-half performance for 2026, with adjusted earnings per share rising by more than 14% year-on-year. The company attributed much of this growth to its Recycling Business Group, which recorded a 36% increase in adjusted EBITDA on revenue growth of 8%. Umicore’s recycling operations, which recover precious and specialty metals from end-of-life electronics, jewellery and industrial materials, benefited from high processing activity, robust demand for recycled metals and a favourable precious metals price environment. The division continued to leverage its closed-loop business model, enhancing operational efficiency while supporting sustainable metal supply chains. The Recycling Business Group accounted for nearly three-quarters of Umicore’s total sales during the first half of 2026, underlining the strategic importance of recycled metal feedstock to the company’s earnings profile. The results highlight the growing role of secondary supply in the precious metals market, particularly for platinum group metals, gold and silver, as industrial consumers increasingly seek secure and sustainable sources of raw materials.
14 hours ago
Palladium Extends Rally Above US$1,360/oz Amid Improving Risk Sentiment
14 hours ago
Palladium Extends Rally Above US$1,360/oz Amid Improving Risk Sentiment
Read More
Palladium Extends Rally Above US$1,360/oz Amid Improving Risk Sentiment
Palladium Extends Rally Above US$1,360/oz Amid Improving Risk Sentiment
[SMM Express] Palladium prices continued their upward momentum this week, rising above US$1,360/oz and reaching their highest level in nearly two months. The gains were supported by broad strength across the precious metals complex as markets responded positively to progress in diplomatic efforts aimed at easing tensions between the United States and Iran. Expectations of lower energy prices and a weaker US dollar also improved investor sentiment, increasing the appeal of dollar-denominated metals. Market participants are closely monitoring upcoming US labour market data for further indications of the Federal Reserve's policy direction. Softer expectations for interest rate tightening have provided additional support to precious metals. Meanwhile, major producer Nornickel maintains its expectation of a global palladium market surplus in 2026, reflecting structural changes in automotive demand.
14 hours ago