Ford Europe has announced agreements to secure supply of low carbon steel for its future products and help reach its carbon neutrality target by 2035. The company is entering Memorandum of Understandings (MoUs) with Salzgitter Flachstahl GmbH, Tata Steel Nederland B.V. and ThyssenKrupp Steel Europe AG to secure supply of low carbon steel.

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.

The steel companies will use green hydrogen and renewable energies in new production processes to gradually reduce their CO₂ footprint in steel production.

The reduction of CO₂ emissions in the supply chain is a key element in Ford’s 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 to a 10 per cent use of carbon neutral steel by 2030,

Sue Slaughter, purchasing director, supply chain sustainability, Ford Motor Company, says: “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. 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.”

Ford of Europe is responsible for producing, selling and servicing Ford brand vehicles in 50 individual markets and employs approximately 35,000 employees at its wholly owned facilities and consolidated joint ventures.