Clean steel: How much will the car really cost?

In the current debate around the Industrial Accelerator Act, increased use of clean steel is a key issue. The European Commission plans to introduce minimum criteria for low-carbon and “Made in EU” steel in public procurement in order to stimulate demand for climate-friendly production.

Critics argue this would make cars significantly more expensive.
So how much more expensive will a car made with clean steel actually be?

Spoiler: Barely more expensive.

Studies indicate that with 40% green steel by 2030, production costs would increase by around €50–60 per vehicle. Even with 100% green steel, the additional costs are estimated in the range of below €100–200 per car in the long term — in some scenarios, even significantly less. More conservative estimates are somewhat higher, but still clearly well below 1% of the vehicle price.

Put differently: The climate-neutral steel production of a car is many times cheaper than what drivers already pay today for a few tank fillings or better special equipment. The debate, therefore, is less about affordability — and more about investment choices and a clear industrial policy direction.