ArcelorMittal North America Announces Supply Agreement with General Motors for North American-Sourced Sustainable XCarb® Steel

Rhea-AI Summary

ArcelorMittal North America will supply General Motors with XCarb™ recycled and renewably produced steel, offering significantly reduced CO2 emissions compared to other carbon steel. Shipments expected to begin in 2Q 2023.

Positive

• ArcelorMittal will supply GM with XCarb™ RRP steel, reducing CO2 emissions compared to other carbon steel
• Material will be supplied from ArcelorMittal Dofasco in Hamilton, Ontario
• XCarb™ RRP steel is made via the Electric Arc Furnace route and contains a stated minimum of 70% scrap, with up to 90% scrap
• The steelmaking process uses electricity from renewable sources
• ArcelorMittal is committed to reducing the carbon intensity of the steel it produces by 25% globally by 2030 and achieving carbon neutrality by 2050

Negative

• None.

SCHERERVILLE, Ind., June 6, 2023 /PRNewswire/ - On our journey towards carbon neutral steel, ArcelorMittal (NYSE: MT) North America will supply General Motors (GM) with XCarb™ recycled and renewably produced (RRP) steel, offering significantly reduced CO2 emissions compared to much of the carbon steel available in North America.¹ Material will be supplied from ArcelorMittal Dofasco in Hamilton, Ontario and shipments are expected to begin during 2Q 2023.

ArcelorMittal North America's XCarb™ RRP steel is made via the Electric Arc Furnace (EAF) route and contains a stated minimum of 70% scrap, with up to 90% scrap, and does not use carbon offsets to achieve the reduced carbon intensity. XCarb™ RRP is a physical steel product. Its lower CO2 intensity has been independently verified with an accompanying Life Cycle Analysis (LCA) that includes Scope 1, 2 and 3 emissions. A confirmation letter verifies the electricity used in the steelmaking process is from renewable sources.

"A terrific first step in supplying steel with substantially lower CO2 emissions to automakers in North America."

"This is a terrific first step in supplying steel with substantially lower CO2 emissions to automakers in North America," says Peter Leblanc, CMO Automotive at ArcelorMittal. "As a global leader in the steel industry, we are making smarter steels for people and planet, and XCarb™ RRP is one of the smartest steels around. It is not the result of clever accounting or offsets – it is steel with physically lower CO2 emissions, which will help drive the achievement of ArcelorMittal's goal to be carbon neutral. We are proud to join GM in their march toward a zero emissions future."

"This agreement provides another example of how we are innovating with our suppliers to reduce emissions throughout the supply chain," said Jeff Morrison, GM vice president of Global Purchasing and Supply Chain. "It also highlights how strong supplier relationships can help build a better, more sustainable future."  

Currently, ArcelorMittal Dofasco is undergoing a transformation to reduce carbon emissions at that facility by approximately 60% by moving to a Direct Reduced Iron (DRI) fed Electric Arc Furnace (EAF) steelmaking process.² When complete, all ArcelorMittal facilities in North America that make automotive steel will utilize an EAF-based process.

ArcelorMittal is committed to reducing the carbon intensity of the steel it produces by 25% globally by 2030 and to achieving carbon neutrality by 2050. More details on ArcelorMittal's climate action ambitions, strategy, technologies and ongoing decarbonization projects can be found here.

¹ Reduced emissions based on an ArcelorMittal Dofasco LCA compared to World Steel Association average global Life Cycle Inventory (LCI) values (57-64% emission reduction) and AISI average North American LCI values (45-50% emission reduction) for similar steel products.

² https://corporate.arcelormittal.com/media/press-releases/arcelormittal-decarbonisation-project-in-hamilton-canada-confirmed-with-the-announcement-of-a-cad-500m-investment-by-the-government-of-ontario

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 16 countries. In 2022, ArcelorMittal had revenues of $79.8 billion and crude steel production of 59.0 million metric tonnes, while iron ore production reached 45.3 million metric tonnes. Our purpose is to produce ever smarter steels that have a positive benefit for people and planet. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

About General Motors

(NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which powers everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com.

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SOURCE ArcelorMittal S.A.

FAQ

What is the steel being supplied by ArcelorMittal to General Motors?

ArcelorMittal will supply General Motors with XCarb™ recycled and renewably produced steel

Where will the material be supplied from?

The material will be supplied from ArcelorMittal Dofasco in Hamilton, Ontario

How is XCarb™ RRP steel made?

XCarb™ RRP steel is made via the Electric Arc Furnace route and contains a stated minimum of 70% scrap, with up to 90% scrap

What is ArcelorMittal's commitment to reducing carbon emissions?

ArcelorMittal is committed to reducing the carbon intensity of the steel it produces by 25% globally by 2030 and achieving carbon neutrality by 2050