U.S. Steel announced that its Big River Steel facility in Osceola has a production agreement with General Motors, the nation's largest automaker.
Under the deal, Big River Steel will supply GM with verdeX steel, which is manufactured with up to 75% fewer emissions compared to traditional blast furnace production. It's also made with up to 90% recycled content and is "endlessly recyclable without degradation," U.S. Steel said in a news release.
The financial value of the deal and production figures were not disclosed.
Steel produced in Osceola will begin shipping to GM manufacturing facilities starting this year.
U.S. Steel plans to expand production of verdeX and other sustainable steel products when its $3 billion Big River Works mill in Osceola is completed. Construction on that facility began last February. It's expected to be completed and fully operational in 2024. Combined with the Big River Steel mill, the two plants form a mega mill capable of producing 6.3 million tons per year.
The company's focus on sustainable steel is part of a plan to reduce its greenhouse emissions by 20% by 2023 and achieve net-zero emissions by 2050. To reach those goals, U.S. Steel plans to take advantage of the high availability of ferrous scrap metal in the U.S. and the growing availability of low- and no-carbon electricity.
The facility under construction in Osceola will have two electric arc furnaces. U.S. Steel has said it will be the most advanced steel manufacturing facility in North America.
GM, which sold 2.27 million vehicles last year, has asked suppliers of vehicle components and raw materials to work toward carbon neutrality as it phases out production of gas and diesel vehicles. In 2021, it announced a deal to buy net-zero carbon steel products from Nucor Corp.