Vale is selected by the U.S. government and begins negotiations for a briquette factory order.

Vale's project envisages the development of an innovative iron ore briquette industrial facility in the United States, which will be the first in the world to apply a proprietary cold agglomeration process to customized briquettes for the direct reduction route.

Vale's project was selected through a mechanism focused on promoting novel and innovative technologies that can demonstrate commercial-scale solutions that deliver significant emissions reductions in hard-to-abate sectors. Award negotiations are expected to take place in mid-2024.

After almost 20 years of development at Vale's technical center in Minas Gerais, Brazil, this briquette launched by Vale in 2021 is made with high Manufactured from low temperature agglomeration of quality iron ore. Mechanical strength. The world's first factory was opened in Vitoria, Brazil in 2023 by Vale.

This selection by the U.S. Government Department of Energy marks an important path forward in validating Vale's unique cold agglomeration technology and its potential to provide innovative solutions for decarbonizing the steel sector. It highlights Vale and Brazil's leadership in developing solutions. For the global steel industry.

Vale plans to negotiate awards of up to US$282.9 million for projects in the United States, develop additional customized facilities in Brazil and around the world, and develop approximately The company aims to reach agglomerate production of 100 million tpy.

The iron ore briquettes will help Vale meet its commitment to reduce net Scope 3 emissions by 15% by 2035. The company also aims to reduce absolute Scope 1 and 2 emissions by 33% by 2030 and achieve neutrality by 2050. The ambition of the Paris Agreement.