From ambition to action: Scaling low emissions steel across automotive

The automotive industry has set ambitious targets to reduce greenhouse gas emissions, particularly across Scope 3, and the conversation has now moved well beyond tailpipe emissions.  Today, OEMs and their suppliers are under growing pressure to account for the carbon footprint of every material that goes into a vehicle, and steel, one of the most widely used of all, sits at the heart of that challenge. At ArcelorMittal, our role is clear: to help translate the concept of “green steel” into something practical, accessible and effective for our customers. And that starts with a simple but important point. There is no unique single path to decarbonised steel.

No silver bullet, but a real path forward

The journey to lower emissions steel is not about a single breakthrough. It is about combining multiple approaches and working collaboratively across the value chain. In our discussions with customers, we see that sustainability strategies are shaped by a range of stakeholders, from procurement to corporate sustainability teams. Our role is to understand these perspectives and help build clear, achievable roadmaps. Hands-on research and development collaboration with automotive customers is one of the most effective ways to do this. The Renault Emblème project is a strong illustration.

Unveiled at the Paris Motor Show in October 2024, the Emblème is a concept vehicle demonstrating a 90% reduction in lifecycle CO2 emissions. ArcelorMittal was the only steelmaker involved, contributing advanced high strength steels, press hardenable steels, and XCarb® recycled and renewably produced grades, helping to reduce both body in white weight and embedded emissions.

From concept to industrial reality

Importantly, XCarb® grades are already supplied in series to our customers, demonstrating full industrialisation and scalability. They deliver the same level of product performance, supported by the same expertise, research and development, and industrial capabilities, ensuring continuity in quality and reliability alongside measurable progress on emissions. Building on the Emblème project, ArcelorMittal is now supplyingXCarb® recycled and renewably produced Usibor® 1500 in serial production for Renault’s latest electric models, including the Renault 5 E Tech and Renault 4 E Tech. In these applications, XCarb® grades directly replace conventional materials in safety critical components, delivering a significant reduction in CO2 emissions while maintaining the same level of performance.

The cost and policy challenge

Cost and regulatory uncertainty remain key concerns. An evolving policy landscape can create hesitation at a time when acceleration is needed. For automotive customers, decarbonisation must be balanced with competitiveness, and that tension is real. 

What gives me confidence is the pragmatic approach many companies are taking. As one OEM recently noted, achieving emissions targets is about cumulative progress. Every tonne of CO₂ saved contributes to the bigger picture. This is where innovation and differentiation matter. Purchasing decisions that leverage advanced solutions enable incremental gains that, over time, deliver meaningful impact. 

Building the infrastructure for scale

At ArcelorMittal, we are investing across multiple pathways. Our XCarb® portfolio is already delivering measurable results today. XCarb® recycled and renewably produced steel is made with a minimum of 75% scrap and 100% renewable electricity, resulting in a lifecycle carbon footprint nearly 70% lower than conventional alternatives.

Beyond emissions reduction, this approach also supports circularity objectives that are increasingly important for automotive customers. By maximising the use of scrap, XCarb® recycled and renewably produced steel helps OEMs move towards more circular products while maintaining performance and scalability.

Products such as Usibor® 1500 with XCarb® substrate, our reference grade for hot stamping, are already in serial production following OEM and Tier One validation, confirming full industrialisation and scalability. At the same time, we are advancing technologies ranging from carbon capture and utilisation to new production routes based on electric arc furnace (EAF) technology. A key milestone is our €1.3 billion investment in a new 2m tonne EAF at Dunkirk, scheduled to start up in 2029. This will complement our existing footprint, including our EAF in Sestao, where XCarb® recycled and renewably produced steel is already in production.

We are also scaling globally. In North America, XCarb® recycled and renewably produced steel is already available to automotive customers, supported by the ramp up of a 1.5m tonne electric arc furnace at Calvert, expected to reach full capacity in the second half of 2026. In parallel, our joint venture ArcelorMittal Nippon Steel India has become the first integrated steel producer in India to receive government backed green steel certification under the Ministry of Steel’s new taxonomy

From ambition to leadership

Ultimately, success depends on collaboration across the full value chain. When OEMs specify lower emissions steel, integrate it into their vehicles, and communicate that progress publicly, it becomes more than a technical achievement. It sends a clear signal to the entire industry that change is underway.

The transition has already begun. By taking a pragmatic, partnership driven approach, we can turn ambition into reality. Acting now to scale innovation and embed lower emissions steel into everyday decisions will not only accelerate change across the automotive industry, but also create a clear competitive advantage.