Green steel for green cars?
According to this week's interview with Fastmarkets, there is variation among auto manufacturers’ understanding of #greensteel, despite a clear #demand for it in the automotive industry and a willingness to pay a #premium for it, said deputy director at CALSTART’s Green Steel Program Jon Gordon.
He mentioned the following points:
- Lack of awareness of green steel among original equipment manufacturers (OEMs)
- However, the big OEMs, like Ford, [General Motors] and Volvo are aware of green steel… and are already actively competing amongst each other for access to this product with limited supply
- Green steel is a “new term” for smaller OEMs that manufacture buses, trucks and off road equipment
The article also points out that there is a clear demand for green steel among automakers, with 3.2 million tonnes of near-zero emissions steel already in demand by the auto industry by 2030, according to the Rocky Mountain Institute (RMI).
It also notes that incorporating green steel would increase the cost of an average car by around $100-200, according to ArcelorMittal chief executive officer Aditya Mittal.
To raise awareness about green #steel among auto manufacturers, CALSTART – along with other climate and industrial groups – launched the #RacetoGreenSteel campaign on February 14: https://lnkd.in/g2rP2DFK
The campaign aims to inform automakers on the advantages of green primary steelmaking and navigate existing programs related to establishing emissions targets and obtaining low-emissions steel, including on RMI’s Sustainable Steel Buyers Platform.
The other organizations include Industrious Labs, the International Council on Clean Transportation and the Climate Group.
Read more: https://lnkd.in/gZ6YpGC6
#IndustryInsights #Automotive #SteelDecarbonization