U. S. Steel Announces Supply Agreement with General Motors for U.S.-Sourced Sustainable verdeX® Steel

Rhea-AI Summary

United States Steel Corporation (NYSE: X) announced its supply agreement with General Motors (NYSE: GM) for its verdeX^® steel, which produces up to 75% fewer emissions compared to traditional methods and consists of up to 90% recycled content. This steel will be manufactured at Big River Steel, a facility certified under LEED and ResponsibleSteel™. Shipping will begin this year. The company is also constructing a $3 billion facility in Osceola, Arkansas, to enhance production. U. S. Steel aims for net-zero greenhouse gas emissions by 2050, being the first North American steelmaker to join ResponsibleSteel™.

Positive

• Supply agreement with GM for verdeX® steel enhances sustainability efforts.
• VerdeX® steel production emits up to 75% fewer emissions and consists of up to 90% recycled content.
• New $3 billion facility in Osceola, Arkansas, will expand sustainable steel production.

Negative

• None.

PITTSBURGH--(BUSINESS WIRE)-- United States Steel Corporation (NYSE: X) (“U. S. Steel”) announced today that it will supply General Motors (GM) with its advanced and sustainable steel solution called verdeX^® steel. The steel is manufactured with up to 75 percent fewer emissions compared to traditional blast furnace production¹, is made with up to 90 percent recycled content and is endlessly recyclable without degradation.

U. S. Steel’s verdeX^® steel will be manufactured at Big River Steel, a LEED Certified^® facility that also meets the ResponsibleSteel™ Standard site certification, along with a new advanced technology mill under construction in Osceola, Ark. The steel produced at the Big River Steel facility will begin shipping to GM manufacturing facilities starting this year.

“We are pleased to join GM in its mission to promote a world with zero emissions by providing such an advanced and sustainable steel product,” said U. S. Steel Senior Vice President and Chief Commercial Officer, Ken Jaycox. “As part of our Best for All^® strategy, we are committed to helping our customers reduce their carbon footprint by providing American-made advanced steel products that are manufactured with fewer emissions and can be recycled repeatedly. Our verdeX^® steel offers both the advantages of advanced high strength steel and low manufacturing emissions.”

“This agreement is an example of how we are innovating with our suppliers to create lower-emission products for our customers,” said Jeff Morrison, GM vice president of Global Purchasing and Supply Chain. “It also highlights how strong supplier relationships can help build a better future.”

When complete, U. S. Steel’s new $3 billion facility currently under construction in Osceola, Ark., will use advanced technology to expand production of sustainable advanced high-strength and electrical steels, including expanding our verdeX^® steel offering which will be widely available to manufacturers and can help lower their carbon footprint.

U. S. Steel was the first American steelmaker to announce a net-zero greenhouse gas emissions goal by 2050 and the first North American steel company to join ResponsibleSteel™, a global not-for-profit working to make steel more sustainable.

More information on U. S. Steel’s greenhouse gas emissions targets and environmental efforts can be found here. More information on verdeX^® steel is located here.

¹Based on comparing Scope 1 and Scope 2 CO₂e intensities for raw steel production at U. S. Steel integrated Blast Furnace - Basic Oxygen Furnace facilities and the Big River Steel Electric Arc Furnace (EAF) facility, as reported in the U. S. Steel’s 2021 Sustainability Report.

About U. S. Steel

Founded in 1901, United States Steel Corporation is a leading steel producer. With an unwavering focus on safety, the company’s customer-centric Best for All^® strategy is advancing a more secure, sustainable future for U. S. Steel and its stakeholders. With a renewed emphasis on innovation, U. S. Steel serves the automotive, construction, appliance, energy, containers, and packaging industries with high value-added steel products such as U. S. Steel’s proprietary XG3^® advanced high-strength steel. The company also maintains competitively advantaged iron ore production and has an annual raw steelmaking capability of 22.4 million net tons. U. S. Steel is headquartered in Pittsburgh, Pennsylvania, with world-class operations across the United States and in Central Europe. For more information, please visit www.ussteel.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 will power 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.

U. S. Steel Cautionary Note Regarding Forward-Looking Statements

This release contains information that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. Generally, we have identified such forward-looking statements by using the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “target,” “forecast,” “aim,” “should,” “plan,” “goal,” “future,” “will,” "may" and similar expressions or by using future dates in connection with any discussion of, among other things, the construction or operation of new or existing facilities and operating capabilities, operating or financial performance, trends, events or developments that we expect or anticipate will occur in the future, anticipated cost savings, potential capital and operational cash improvements, statements regarding our future strategies, products and innovations, statements regarding our greenhouse gas emissions reduction goals, and statements expressing general views about future operating results. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements are not historical facts, but instead represent only the Company’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company’s control. It is possible that the Company’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Management believes that these forward-looking statements are reasonable as of the time made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. Our Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our Company's historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, the risks and uncertainties described in “Item 1A Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021 and those described from time to time in our future reports filed with the Securities and Exchange Commission.

References to "U. S. Steel," "the Company," "we," "us," and "our" refer to United States Steel Corporation and its consolidated subsidiaries, and references to “Big River Steel” refer to Big River Steel Holdings LLC and its direct and indirect subsidiaries unless otherwise indicated by the context.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230213005686/en/

Arista Joyner

Manager

Financial Communications

T – (412) 433-3994

E – aejoyner@uss.com

Kevin Lewis

Vice President

Finance

T – (412) 433-6935

E – klewis@uss.com

Source: United States Steel Corporation

FAQ

What is the significance of U. S. Steel's agreement with GM?

The agreement highlights U. S. Steel's commitment to sustainability by supplying verdeX® steel, which has lower emissions and high recycled content.

When will U. S. Steel begin shipping verdeX® steel to GM?

Shipping of verdeX® steel to GM manufacturing facilities will start this year.

What is verdeX® steel?

VerdeX® steel is an advanced steel solution that produces up to 75% fewer emissions compared to traditional production and contains up to 90% recycled materials.

What are U. S. Steel's emissions goals?

U. S. Steel aims for net-zero greenhouse gas emissions by 2050.

Where is U. S. Steel's new facility located?

The new facility is being constructed in Osceola, Arkansas, with an investment of $3 billion.