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Ford signs up to low carbon steel in Europe

Ford in Europe has announced agreements with Salzgitter Flachstahl, Tata Steel Nederland and ThyssenKrupp Steel Europe to secure supplies of low carbon steel for its vehicles as it seeks carbon neutrality by 2035. 

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. It says reducing CO2 emissions in the supply chain is a key element in its plan to target carbon neutrality across its European footprint of facilities, logistics and suppliers by 2035.

The initiative will also contribute to the company’s commitment, announced earlier this year, to a 10% use of carbon neutral steel by 2030. The move coincided with Ford joining 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. In this way, they will contribute to the European Green Deal to achieve zero net emissions in all sectors by 2050.

‘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,’ says Sue Slaughter, purchasing director, supply chain sustainability at Ford. 

‘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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