Under a preliminary agreement, Tata Steel's Dutch arm after 2030 plans to supply Ford plants in Europe with "green" steel.
According to reports by Reuters, Tata plans to start producing steel made without using fossil fuels in 2030 at its plant in Ijmuiden, Netherlands.
The Memorandum of Understanding (MOU) signed between the two companies does not oblige Ford to buy a specified amount of steel at a specified price.
Ford has also signed supply MOUs with Tata, ThyssenKrupp and Salzgitter to Salzgitter. These MOUs will help them get low-carbon steel for manufacturing their new electric crossover model, whose production will begin in 2023 in Cologne.
Ford, in a statement said that the with the help of the agreements it will meet its target of having zero emissions at its facilities in European, logistics and suppliers by 2035.
Ford of Europe's purchasing director, Sue Slaughter said in a statement said, "Improvements within our supply chain are key, and with the use of carbon neutral steel we will take a major step towards lowering the CO2 footprint of our vehicles."