Tata Steel to supply 'Zeremis' steel to Ford

The supply will be initiated after Tata Steel's factory in the Netherlands' IJmuiden "switches to green hydrogen-based steelmaking", according to the MoU signed by the two companies.

This will make Ford the "first customer" to offtake green steel Tata Steel plans to make using hydrogen, which is more sustainable and cleaner than the current steel-making method, the company said in a release to the media.

Green hydrogen refers to hydrogen produced through the electrolysis of water and the rest of the process also runs on renewable energy.

Ford has set 2035 as its target date to achieve carbon neutrality and procuring green steel is essential to realise this goal.

“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,” said Sue Slaughter, Ford purchasing director-supply chain and sustainability.

Ford is also considering other Tata Steel offerings, including the recently launched Zeremis Carbon Lite steel, which comes with an "allocated carbon footprint reduction of up to 100 percent", the release said.

Slaughter underscored that the improvements within the company's supply chain are key and with the use of carbon-neutral steel, Ford will take a major step towards lowering the CO2 footprint of its vehicles.

"By aligning our sustainability ambitions with customers like Ford, we can create an early market for green steel, speed up the transition and meet the expectations of society at large," Hans van den Berg, chairman of the board of management of Tata Steel Nederland BV said.