Steel producer United States Steel Corporation X could have a new product to help with future growth, and it involves the growing electric vehicle market.
What Happened: Steel is an important part of buildings, appliances and automobiles. There is no exception to the use of steel in electric vehicles.
A leading steel company is working on new ways to help the electric vehicle sector and increase revenue growth opportunities.
In March, U.S. Steel announced the launch of InduX, an electrical steel that will be made at its Big River Steel Facility in Arkansas.
InduX electrical steel is a very wide, ultra-thin, and light-weight steel, with all the magnetic properties necessary for electric vehicles, as well as generators and transformers, the company said.
In the summer of 2023, the U.S. Steel will begin production of InduX, with a goal of producing 200,000 tons of steel per year.
The move is expected to help U.S. Steel with its growing demand for electric vehicles and the company's sustainability efforts.
We are doing our part by collaborating to find new business approaches and to develop new technologies, as per the goal of net-zero GHG emissions by 2050, according to U.S. Steel Senior Vice President Richard L. Fruehauf.
The company plans to announce more details on InduX in the coming weeks.
Why is it important that more customized electric steel with better magnetic properties can help with motor efficiency and improve mileage for vehicles.
InduX's announcement came after the company announced first quarter guidance that came in ahead of estimates from the Street.
The first-quarter earnings per share hit a range of 58 cents to 63 cents per share, compared to the Street's goal of 41 cents. The company cited strong order books and higher average selling prices as signs of optimism. It added that it was becoming more bullish about its outlook for 2023.
The first quarter financial results are expected to come from U.S. Steel in April.
X Price Action: U.S. Steel shares have gained around 4% year-to-date in 2023 with shares sitting at $26.05 at the time of writing. The last year, the shares were down over 30%.
Andrew Carnegie was born on this day in Market History.