Baosteel Co., Ltd. and Chery Holding signed the "Memorandum of Cooperation on Building a Green and Low-Carbon Steel Supply Chain"

On December 14, Baosteel Co., Ltd. and Chery Holding officially signed the "Memorandum of Cooperation on Building a Green and Low-Carbon Steel Supply Chain" (hereinafter referred to as the "Memorandum"), focusing on future green and low-carbon cooperation, jointly building a green and low-carbon automotive supply chain, and promoting the early realization of sustainable development goals between the two parties. The two sides had a fruitful dialogue on how to carry out the pilot application of Baosteel's BeyondECO® low-carbon materials on Chery Holding products.

The Memorandum clarifies the intentions of both parties in the R&D and application of green and low-carbon steel materials, and formulates detailed plans and measures based on the premise of landing and application. Wu Xiaodi, General Manager and Deputy Secretary of the Party Committee of Baosteel Co., Ltd., and Zhang Guozhong, Executive Deputy General Manager of Chery Co., Ltd., witnessed the signing, Peng Jun, Assistant General Manager of Baosteel Co., Ltd. and General Manager of Marketing Center (Baosteel International), and Qi Shilong, Deputy General Manager of Chery Co., Ltd., signed the "Memorandum" on behalf of their respective enterprises, and the heads of relevant units and departments of both sides participated in the signing event. The signing of the MoU is a new starting point for the long-term close cooperation between the two sides in green and low-carbon, and will be a concrete practice for the two sides to jointly respond to global climate change and promote the integrated green and low-carbon development of the Yangtze River Delta.

According to the MOU, starting in 2024, Baosteel will gradually supply low-carbon emission green steel (BeyondECO-30%) with a carbon reduction of about 30% in Chery's existing production models, and from 2026 onwards, it will gradually supply low-carbon green steel with a carbon reduction of more than 50% in Chery's production models (BeyondECO-50®%) with the help of a hydrogen-based shaft furnace low-carbon metallurgical process, and then gradually supply low-carbon emission green steel (BeyondECO-®® 80%）。

Baosteel Co., Ltd. said that it will work together with Chery Holding to take this opportunity to continuously improve its innovation capabilities, promote the digital and intelligent low-carbon transformation, jointly promote the integrated green and low-carbon development of the Yangtze River Delta, coordinate ecological environmental protection and economic development, enhance development potential and stamina, and jointly write a new chapter in the high-quality development of the Yangtze River Delta.

It is understood that Baosteel has released sustainable development reports for 20 consecutive years, and last year the company released the first "Climate Action Report" of national steel enterprises with reference to the TCFD framework, aiming to develop into a world-class intelligent manufacturing service provider and a leader in low-carbon development by creating a source of original technology.

In recent years, Baosteel Co., Ltd. has focused on the three major aspects of green manufacturing, green manufacturing and green ecology, and has made positive achievements in the pursuit of extreme energy efficiency, the use of clean energy, the application of low-carbon metallurgical technology, the promotion of smart manufacturing, the upgrading of carbon data platform, the development of green products and the coordination of green supply chain. At present, Baosteel has achieved the R&D and mass production of multiple carbon reduction technology paths, and has the ability to mass-produce and supply steel products with carbon reduction of 30%-60%. At the same time, China's first self-integrated million-ton hydrogen-based shaft furnace built by Baosteel in Zhanjiang Iron and Steel will be completed and put into operation at the end of this month, which is of milestone significance for promoting the green and low-carbon transformation and development of the steel industry. In 2025, Baosteel's net-zero carbon automotive steel production line will be fully completed, and a net-zero carbon high-end plate production capacity of 1.8 million tons/year will be formed by then. Baosteel's zero-carbon process can reduce carbon emissions by about 90% compared with long-process processes.