Korean steelmaker Hyundai Steel has signed memoranda of understanding (MOUs) with Czech auto parts producer Tawesco and Italian automotive steel processer Eusider to supply carbon-reduced steel sheets. The steelmaker is expected to start testing lower emission steel parts with these customers this September.
Steel materials suppliers of European automobile makers with carbon neutrality targets, such as Volkswagen and Stellandis, Tawesco and Eusider, need to source low-carbon emission resources to meet clients’ demand. The carbon border adjustment mechanism (CBAM) on imports to EU will be implemented in 2026.
Hyundai Steel is investing in low-carbon steel sheet production facilities at its Dangjin Steel Mill. It plans to build a liquefied natural gas (LNG) power plant at this plant and switch to electric arc furnace (EAF) steelmaking (see Kallanish passim). This company defines its reduced carbon steel sheet as having a 20% carbon emission reduction compared to blast furnace products.
The steelmaker also signed an MOU with the German car parts maker Kirchhoff Automotive this May to sell low-carbon steel products, including cold-rolled and hot-dip galvanized coils. It intends to establish low-carbon emission automobile steel sheets sales network by collaborating with these European car parts makers.