U.S. Steel’s (NYSE: X) sustainable verdeX® steel selected by General Motors for eco-friendly production

United States Steel Corp. has been selected by General Motors to supply steel from sustainable sourcing. The agreement was announced by U.S. Steel on Tuesday, although no details were provided on the term of the contract, the price at which the verdeX steel will be sold or the total value of the deal. U.S. Steel is a major steel supplier to the automotive industry, and both automakers and steelmakers are looking for greener steel options.

Deliveries of the verdeX steel will begin later this year. The steel will be produced at U.S. Steel’s Big River Steel mill in Arkansas, as well as a second mini steel mill currently under construction in Osceola, Arkansas, rather than the Mon Valley mill. U.S. Steel claims the verdeX steel contains up to 90% recycled content and is produced with up to 75% fewer greenhouse gas emissions than steel produced in blast furnaces like those located in Mon Valley.

Ken Jaycox, senior vice president and chief commercial officer, said the company is committed to helping its customers reduce their carbon footprint by offering high-quality, domestically produced steel products that are produced with fewer emissions and can be recycled repeatedly. According to Jaycox, verdeX steel offers the benefits of high-strength steel while producing low emissions during manufacturing.