Effectively recycling advanced steels

ArcelorMittal’s recycling strategy is an integral part of our sustainability strategy. We believe that steel will continue to be the dominant material in vehicles for the foreseeable future. And one of the major reasons for this is the unmatched properties that make steel the most reusable material in the world. That is not just a theory, it is working in practice as the high effective recycling rates for steel show.

In theory, every material can be reused, remanufactured, and/or recycled. However, the energy and money needed to recycle some materials, such as composites, is so great that they are recycled much less than metals like steel. That is why ArcelorMittal talks about ‘effective recycling’ rather than recyclability.

All steel that is used in a vehicle today will be fully recycled once the vehicle reaches its end of life. That is happening with the vehicles that are at the end of their useful life today.

In Europe, the steel recycling rate from end-of-life vehicles is 98 percent. That is largely due to the magnetic properties of steel which makes it very easy to collect with a simple magnet. Of the remaining two percent, around half is lost as fine dust in the shredding process. The remaining one percent is oxidised when the steel is melted in the electric arc furnace (EAF) or blast oxygen furnace (BOF).

In some regions of the world, governments are planning actions to help ‘close the loop’ of product lifecycles. The goal of these initiatives is to ensure maximum value is extracted from raw materials, products, and waste. These actions will help to ensure that all available steel scrap is identified, collected, and recycled.

This fits with the ‘4R’ (Reduce, Reuse, Remanufacture and Recycle) concept of the circular economy where resources remain in use for as long as possible. Steel has a key advantage here. Not only do steel parts remain durable for longer, even in hard-wearing applications, it is easy to reduce their weight using advanced high strength steels (AHSS). And steel’s durability ensures components can be effectively reused, remanufactured, or recycled indefinitely.

This is true of the advanced and ultra high strength steels (AHSS and UHSS) which are deployed in today’s vehicles. While these steels contain more alloys, the alloy content is very low. These elements are oxidised when the scrap is melted in the EAF or BOF and have no impact on the performance of the new steel produced.

There are things that carmakers and their suppliers can do to increase the efficiency of their recycling operations. For example, carmakers should avoid mixing the scrap produced from different steel grades. This avoids ‘downgrading’ after recycling and ensures a smoother process.

To maximise the quality of the scrap produced at the end of a vehicle’s life, OEMs need to design vehicles with this stage of the lifecycle in mind. Copper, for example, can remain in shredded scrap and it limits the range of products that can be created with the recycled steel. One solution is to reduce the amount of copper used. That can be done by substituting copper with aluminum in electrical motors and connecting wires. Aluminium is lighter and cheaper than copper and has no impact on the quality of ferrous scrap.

During serial production, carmakers can significantly reduce scrap and increase their sustainability using ‘advanced nesting’ and laser welded blanks. This technique optimizes steel usage and significantly reduces costs without affecting a part’s mechanical properties. ArcelorMittal works with carmakers through co-engineering projects to help them optimize part design and reduce scrap during production.

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

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.