In its relentless quest for carbon neutrality, ArcelorMittal North America has unveiled a game-changing development: the introduction of XCarb™ recycled and renewably produced (RRP) steel, a remarkable innovation that significantly reduces CO₂ emissions compared to conventional carbon steel available in North America. This transformative material will be supplied to General Motors (GM) and will emanate from ArcelorMittal Dofasco in Hamilton, Ontario, with shipments set to commence in the second quarter of 2023.
ArcelorMittal North America's XCarb™ RRP steel, produced through the Electric Arc Furnace (EAF) route, boasts a minimum of 70% scrap content, with the potential to reach up to 90% recycled material. What sets it apart is that it achieves this reduced carbon intensity without relying on carbon offsets. As a physical steel product, XCarb™ RRP has undergone independent verification through a comprehensive Life Cycle Analysis (LCA), encompassing Scope 1, 2, and 3 emissions. Furthermore, a confirmation letter attests that the electricity used in the steelmaking process originates from renewable sources.
Peter Leblanc, CMO Automotive at ArcelorMittal, hails this breakthrough as a remarkable stride towards providing steel with significantly lower CO2 emissions to the automotive industry in North America. "XCarb™ RRP is one of the smartest steels available," he asserts, emphasizing that it is not the result of clever accounting or offsets but rather a physically superior steel with reduced carbon emissions. Leblanc affirms that this achievement aligns with ArcelorMittal's broader goal of carbon neutrality, showcasing their commitment to sustainability.
The collaboration between ArcelorMittal and GM exemplifies the industry's innovative drive towards emission reduction throughout the supply chain. Jeff Morrison, GM Vice President of Global Purchasing and Supply Chain, highlights the importance of strong supplier relationships in forging a sustainable future. The agreement underscores the collective effort to create a better world by prioritizing environmental responsibility.
ArcelorMittal Dofasco is currently undergoing a significant transformation aimed at reducing carbon emissions by approximately 60%. This endeavor involves transitioning to a Direct Reduced Iron (DRI) fed Electric Arc Furnace (EAF) steelmaking process. Once completed, all ArcelorMittal facilities in North America that produce automotive steel will adopt the EAF-based process, further solidifying their commitment to sustainable steel production.
ArcelorMittal's ambitious climate action plan targets a 25% reduction in the carbon intensity of its global steel production by 2030, with the ultimate goal of achieving carbon neutrality by 2050. This groundbreaking initiative aligns with the company's broader strategy, which encompasses various decarbonization projects, technologies, and a commitment to sustainable practices.