Synopsis: In a groundbreaking partnership, Gestamp and Tata Steel UK are doubling the recycled steel content in components supplied to the automotive sector, significantly reducing the carbon footprint of the supply chain. High-quality scrap collected from Gestamp's production process is sent to Tata Steel, increasing the recycled content to 30% without compromising quality. This circularity concept contributes to sustainability goals by using recycled materials for low-emission steel production, benefiting vehicle manufacturers and the environment.Article:A groundbreaking collaboration between Gestamp and Tata Steel UK is set to revolutionize the automotive supply chain by significantly increasing the percentage of recycled steel in components supplied to the sector. This initiative not only reduces the carbon footprint but also upholds quality and safety standards.Tata Steel's automotive steel grades already incorporate 17% recycled content, derived from scrap steel re-entering the production process. However, the new partnership with Gestamp takes the percentage of recycled content associated with steel supplied to Gestamp to an impressive 30%. Crucially, this increase in recycled content doesn't compromise the quality, strength, or formability of the steel.The positive impact of this endeavor cascades through the automotive supply chain, resulting in a considerable reduction in the overall carbon footprint of production processes. The concept of circularity in steel production is vital, as steel can be endlessly re-melted to produce material of the same high quality.Typically, during manufacturing, high-quality scrap material is generated. Traditionally, this scrap is sold to third-party buyers, often mixed with steel of varying quality. In this new partnership, Gestamp takes a different route. They efficiently collect and manage their high-quality scrap, sending it to Tata Steel's steelworks in Port Talbot. The returned steel is then accounted for as part of the component's recycled content, thanks to the mass balance principle.To ensure transparency and accountability, Tata Steel will provide evidence of the volume of high-quality scrap supplied and the associated CO₂ savings by establishing a Gestamp Recycled Content Bank, subject to independent audits.Peter Quinn, Director of Sustainability & Environment at Tata Steel UK, emphasizes the importance of reducing the automotive supply chain's carbon footprint. This innovative partnership demonstrates the potential for collaborative thinking in the UK automotive supply chain, aligning with sustainability and efficiency goals.Ernesto Barceló, Chief ESG Officer at Gestamp, highlights how this agreement strengthens their circular economy model while ensuring product quality and safety. By using high-quality scrap, Tata Steel can produce lower emissions steel, contributing to environmental sustainability.Any additional revenue generated by Tata Steel UK through this partnership will be reinvested in decarbonization projects, further propelling the company's journey to net zero. Tata Steel UK has already achieved a remarkable 30% reduction in the energy required to produce one tonne of steel since 1990.Conclusion:The collaboration between Gestamp and Tata Steel UK marks a pivotal moment in the automotive supply chain. By doubling the recycled steel content with no compromise on quality, this partnership significantly reduces the carbon footprint of the sector. This innovative approach to circularity in steel production benefits not only manufacturers but also the environment. With Tata Steel's commitment to reinvesting revenue in decarbonization projects, the path to a net-zero future is becoming clearer.