SDI to supply Tesla?

Steel Dynamics Inc., headquartered in Fort Wayne, Indiana, is rumored to have signed a supply deal with Tesla for the Cybertruck electric pickup.

According to KIIITV, Corpus Christie, Texas, SDI’s new electric arc furnace (EAF) steel mill that is under construction in Sinton, Texas, will supply steel for the truck, which will be manufactured at Tesla’s Austin, Texas, factory, which also is under construction.

The rumor also was reported by Electrek, a news and commentary website on the transition from fossil-fuel transport to electric transport, which cited the KIIITV report. 

Electrek says the Cybertruck will not feature a traditional automotive body system but an exoskeleton.

Tesla says, “Cybertruck is built with an exterior shell made for ultimate durability and passenger protection. Starting with a nearly impenetrable exoskeleton, every component is designed for superior strength and endurance, from Ultra-Hard 30X cold-rolled stainless-steel structural skin to Tesla armor glass.”

Regarding the steel used in the vehicle’s construction, Tesla says, “If there was something better, we’d use it.”

Electrek adds that neither Tesla nor SDI has confirmed a supply agreement for the Cybertruck, which it reports that Tesla plans to start producing in late 2021.

According to Bloomberg, the rumor caused SDI’s shares to rise in value by as much as 3.7 percent “to touch the highest in two years on the Nasdaq."

The automotive market was once dominated by integrated steel producers, but EAF steelmakers have been adding market share in this area as they increase their production of hot-rolled coil capacity.