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ZF and ArcelorMittal work together to decarbonise the automotive industry with low carbon-emissions steel

6 June 2024

Friedrichshafen, 6 June 2024 - ArcelorMittal, a worldwide leading steel and mining company, and ZF, the global company that supplies systems for passenger cars, commercial vehicles and industrial technology, are pleased to announce the signing of a memorandum of understanding that will contribute to moving the automotive industry towards a more sustainable future, thanks to the combination of ArcelorMittal’s XCarb® recycled and renewably produced steel and ZF's manufacturing expertise. XCarb® recycled and renewably produced steel is produced in an Electric Arc Furnace (EAF), using high levels of scrap and 100% renewable electricity for the EAF smelting process, backed by Guarantees of Origin in Europe and I-RECs (International Renewable Energy Certificates) for the rest of the world.


From left to right: Jorrit Kraus (ZF), Daniele Pontarollo (ZF), Tapas Rajderkar (ArcelorMittal), Sema Alyamac (ArcelorMittal)

Today, ArcelorMittal manufactures bars and wire rods with decreased emissions of CO2 at its plants in Hamburg and Warsaw, saving up to 80% of CO2 emissions compared with products manufactured via the traditional blast furnace route. ArcelorMittal’s XCarb® recycled and renewably produced bars and wire rods will be the input material for the components produced by ZF. This initiative is perfectly aligned with ZF's vision of sustainability and environmental responsibility. Together, the two companies will strive to help reduce the automotive industry's carbon footprint while improving product quality and performance.

Both companies share the same positive and constructive approach to sustainability and agree to work together on common climate projects aiming to reduce CO2 emissions. These projects focus on the use of XCarb® recycled and renewably produced solutions from ArcelorMittal, either with products already available on the market, or through other products which are still under development.

"Sustainability and innovation are inseparable and must be progressed jointly. Therefore, the collaboration with strong strategic partners at an early stage of the product development process is key to successfully realize our ambitious goals towards a cleaner and safer environment", says Daniele Pontarollo, Chief Procurement Officer at ZF.

Tapas Rajderkar, CMO of ArcelorMittal Europe – Long Products, says: “ArcelorMittal has taken a clear path towards the decarbonisation of the steel production process. It is equally important for us to demonstrate our support to our customers by providing ready-to-use low carbon-emissions solutions to meet their own decarbonisation targets. We are therefore delighted to begin our cooperation and partnership with ZF. This is an important step towards a net-zero industrial future.”

Committing to achieve carbon neutrality by 2050 and reducing CO2 emissions by 35% by 2030 in Europe, ArcelorMittal is at the forefront of innovation in low carbon-emissions steel production. Its XCarb® initiative is designed to bring together ArcelorMittal’s products and steelmaking activities towards net-zero steel.

 

Media contact: Arne Langner, arne.langner@arcelormittal.com, +49 30 75445-556