Tata Steel’s Dutch arm has signed a memorandum of understanding with Ford in Europe to supply the carmaker with green steel.
The deliveries are expected to start as soon as the IJmuiden steelworks switches to green hydrogen-based steelmaking, which is more sustainable and cleaner than the current steelmaking method. The agreement makes Ford the first customer committed to offtake the green steel that Tata Steel plans to produce via the hydrogen route.
Securing the future supply of more environmentally-friendly produced steel is essential to enable Ford to reach its 2035 carbon neutrality target. Ford is already focusing on using low-CO2 steel in its all-new, all-electric, medium-sized crossover, which will start production in Europe in 2023. Ford and Tata Steel intend to explore opportunities to use other green steel products.
More than half the weight of an average car consists of steel, and a car can consist of dozens of different types of steel. All types of steel vary in strength, weight, formability, magnetic characteristics, and coating types. There is a constant desire to make steel stronger, lighter and smoother from a safety, environmental and aesthetic point of view. As electric vehicles gain in popularity, steel requirements for automakers, as well as the design ideas of automobiles, are changing.
“Our customers, like us, want to take care of our planet, and we are taking the necessary steps on this journey, providing the vehicles they need to make a positive contribution against climate change, produced in a more sustainable way,” said Sue Slaughter, Ford Purchasing Director, Supply Chain, and Sustainability. “Improvements within our supply chain are key, and with the use of carbon-neutral steel, we will take a major step towards lowering the CO2 footprint of our vehicles.”