Fortescue, the fourth-largest iron ore supplier in the world, will partner with a wholly owned subsidiary of China Baowu Steel Group, the world's largest steelmaker, to address the global steel industry's decarbonization challenges.

A memorandum of understanding has been signed between the two companies. Fortescue's green iron project is underway and will produce 1,500 metric tons of green iron per year, with the first production expected in 2025. The company also plans to green all of its iron ore products by 2030.

Fortescue will use green hydrogen in a reduction furnace to convert iron ore into sponge iron, which will then be processed in an electric smelting furnace for the production of high-purity green iron.