According to Reuters, the agreement comes as Tata plans to manufacture "green" steel, also known as steel made without fossil fuels, at one of its facilities in the Netherlands.

Hans van den Berg, chief executive of Tata Steel Nederland, said that the American carmaker "wants to have a considerable amount of green steel, and ... we will take steps so that we will be able to deliver it."

At the same time, Ford officials said that the company reached agreements with ThyssenKrupp and Salzgitter to get supplies of low carbon steel that the carmaker will implement in its future electric crossover that should be produced at the factory in Cologne.

Ford of Europe's purchasing director Sue Slaughter said that "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."

The American company expects that green steel will help it achieve net-zero emissions by 2035 in its European facilities, but also with regards to logistics and supply chains.