General Motors reaches supply agreement for sustainable steel

The partnership sees General Motors extend its commitment to a greener automotive future

On its journey towards carbon neutral steel, ArcelorMittal will now supply car giant General Motors (GM).

XCarb is the former’s recycled and renewably produced (RRP) steel offering. According to ArcelorMittal, it has significantly reduced CO₂ emissions than many other equivalents in the US. This has been verified with an accompanying Life Cycle Analysis (LCA) that includes Scope 1, 2 and 3 emissions.

Material will be supplied from a company depot in Hamilton, Ontario and shipments are expected to begin in mid-2023.

XCarb is made via the Electric Arc Furnace (EAF) route and contains a stated minimum of 70 percent scrap (with up to 90 percent in some cases), and does not use carbon offsets to achieve the reduced carbon intensity.

“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 its 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,” added 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.”