Ford signs deal to secure delivery of low carbon steel

Ford targets the use of low carbon steel in its all-new medium-sized crossover

Ford signs deal to secure delivery of low carbon steel

Ford Europe has announced a new supply deal with Salzgitter Flachstahl GmbH, Tata Steel Nederland B.V. and ThyssenKrupp Steel Europe AG to secure supply of low carbon steel.

The carmaker will significantly improve the CO2 footprint of its supply chain, with steel production being a key component.

As a first application Ford plans to use the low-CO2 steel for the production of its all-new, all-electric, medium-sized crossover vehicle, starting in 2023.

The reduction of CO2 emissions in the supply chain is a key element in Ford’s plan to target carbon neutrality across its European footprint of facilities, logistics and suppliers by 2035.

Major updates to the Cologne Electrification Centre production facility, with new energy efficient solutions, will save more than 2,000 tonnes of CO2 and more than 2,600MWh of electric energy per year.

The initiative will also contribute to the company’s commitment to a 10 per cent use of carbon neutral steel by 2030 from earlier this year, announced when Ford joined the First Movers Coalition, a global initiative by the World Economic Forum to harness purchasing power and supply chains to create early markets for innovative clean energy technologies.

The steel companies will use green hydrogen and renewable energies in new production processes to gradually reduce their CO2 footprint in steel production.

Sue Slaughter, purchasing director for supply chain sustainability at Ford Motor Company said: “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.”

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