Ford Europe Signs Supply Deal for Sustainable ‘Green’ Steel

Ford is seeking to burnish its car-production carbon-dioxide credentials in Europe by following Volvo’s lead in sourcing “green” steel.

Ford of Europe has signed a memorandum of understanding with Tata Steel Nederland to supply the automaker with Zeremis steel once the IJmuiden steelworks switches to green hydrogen-fueled steelmaking. Ford believes securing a future supply of more environmentally friendly steel is essential to reaching its 2035 carbon neutrality target. The agreement makes Ford the first customer committed to buy the green steel, which is more sustainable and cleaner than that from the current steelmaking method.

The automaker already has targeted the use of low-CO2 steel in its upcoming all-electric midsize CUV going into production in 2023 in Cologne, Germany. Now both companies intend to explore opportunities to use other green-steel products. This includes, for example, Tata Steel’s recently launched Zeremis Carbon Lite steel with an allocated carbon-footprint reduction of up to 100%. The lower CO2 intensity is based on CO2 savings realized within Tata Steel Nederland and is verified by independent assurance expert DNV.

Sue Slaughter, Ford Europe purchasing director-supply chain and sustainability, says: “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.

“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.”