Ford has signed memorandums of understanding in Europe with Salzgitter Flachstahl, Tata Steel, and ThyssenKrupp Steel. The measure ensures that low-carbon steel is delivered for future products, assisting the company in meeting its goal of becoming carbon neutral in Europe by 2035.
Ford's strategic suppliers plan to increase low-carbon steel production in the coming years. Strong relationships with these partners help Ford reduce its supply chain's carbon footprint, including steel production.
Low-carbon steel will be used to manufacture a new fully Ford electric SUV model. Ford intends to use low-carbon steel in the initial production of an all-new, all-electric SUV model, which will begin in Cologne in 2023.
Reduced carbon dioxide emissions in the supply chain are a critical component of Ford's plan to achieve carbon neutrality in all European operations by 2035. Ford is analyzing the entire value chain to produce vehicles that are even more environmentally efficient. The significant modifications and energy-efficient solutions implemented at the Cologne Electrification Center, a Cologne-based electric car manufacturing facility, save more than 2,000 tons of CO2 and more than 2,600 MWh of electrical energy each year.
The signing of the memorandum of understanding also supports Ford's commitment to using 10% carbon-neutral steel in its production by 2030, which it made earlier this year when it joined the World Economic Forum's First Movers Coalition, a global initiative to leverage purchasing power and supply chains to create markets for innovative clean energy technologies.
Steel companies are gradually reducing carbon dioxide emissions from steel production by using green hydrogen and renewable energy in their new production processes. This contributes to the European Green Deal, which aims for net zero emissions in all sectors by 2050.
"Our customers, like us, care about the environment. We provide them with more environmentally friendly vehicles," says Sue Slaughter, Ford Motor Company's purchasing director, and sustainable supply chain.