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: An important component of buildings, appliances and automobiles is often steel. No exception to the usage of steel are electric vehicles.
A leading steel company is working on new ways to help the electric vehicle sector and boost its 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, having all the magnetic properties necessary for electric vehicles, as well as generators and transformers,” the company said.
U.S. Steel will begin production of InduX in the summer of 2023, with a goal to produce 200,000 tons of the steel per year.
The move will help U.S. Steel amid a growing demand for electric vehicles and with the company's sustainability efforts.
“We know achieving our goal of net-zero GHG emissions by 2050 requires extraordinary action from everyone, and we are doing our part by collaborating to find new business approaches and to develop new technologies,” U.S. Steel Senior Vice President Richard L. Fruehauf said.
The company plans to announce more details on InduX in the coming weeks.
Related Link: Analyst Ratings on United States Steel
Why It’s Important: The company said that more customized electric steel with better magnetic properties can help with motor efficiency and improve mileage for vehicles.
The announcement of InduX comes after the company announced first quarter guidance that came in ahead of estimates from the Street.
The company sees first-quarter earnings per share hitting a range of 58 cents to 63 cents per share compared to the Street's target of 41 cents. The company cited strong order books and higher average selling prices as signs of optimism. It added that it was becoming “increasingly more bullish” on its 2023 outlook.
First-quarter financial results are expected 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. Shares remain down over 30% in the last year.
Read Next: Andrew Carnegie Is Born On This Day In Market History
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
