U.S. Steel to Supply GM with Sustainable-Steel Product

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Researched by Industrial Info Resources (Sugar Land, Texas)--United States Steel Corporation (U.S. Steel) (NYSE:X) (Pittsburgh, Pennsylvania) has signed a supply agreement with General Motors Company (GM) (NYSE:GM) (Detroit, Michigan) to supply the electric vehicle (EV) automaker with a sustainable-steel product from its Big River Steel complex in Osceola, Arkansas, which is under construction. Industrial Info is tracking $6.8 billion worth of active projects from U.S. Steel, including more than $3 billion attributed to three projects at Big River Steel.

The product, verdeX steel, is "manufactured with up to 75% fewer emissions compared with traditional blast furnace production, is made with up to 90% recycled content, and is endlessly recyclable without degradation," according to a U.S. Steel press release announcing the agreement.

Construction of the $3 billion Phase 1 minimill facility at Big River Steel kicked off in early 2022, with completion expected in 2024. The project entails installing two state-of-the-art electric arc furnaces with a production capacity of 3 million tons per year, and technology to produce high-strength and electrical steels--including the verdeX line of sustainable steel. In order to produce those products, U.S. Steel is at work on adding a $450 million electrical steels line as part of the first phase, with a capacity of 200,000 tons per year.

In the recent press release, the company said steel produced at Big River Steel will begin shipping to GM manufacturing facilities starting this year.

In U.S. Steel's most recent quarterly earnings-related conference call, Chief Executive Officer Dave Burritt said, "We will be uniquely positioned with products ranging from 0.25-millimeter to 0.5-millimeter gauge to serve high-end electric-vehicle grades of steel."

Also expected for completion in 2024 at Big River Steel is a $280 million Phase II galvanizing line addition, which Burritt said will account for some of the company's $2.5 billion in full-year 2023 capital spending.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can see reports for the Phase 1 minimill facility, galvanizing line and electric steels projects.

The closest GM facility to Big River Steel being tracked by Industrial Info is the automaker's auto assembly and engine manufacturing plant in Spring Hill, Tennessee, where an expansion to increase the production of electric vehicles was completed in mid-2022. Subscribers to the GMI Industrial Manufacturing plant and project databases can click here for a plant profile and here for a related project report.

U.S. Steel is not the only major domestic steel producer with plans to manufacture sustainable-steel products. Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) announced last month it plans to develop a sustainable steel-plate product that exclusively would be used for offshore wind applications. For more information, see Industrial Info's January 23, 2023, article - Nucor Introduces Sustainable-Steel Product for Offshore Wind.

Subscribers to Industrial Info's GMI plant and project databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Click here for a full list of reports for active projects from U.S. Steel.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).