Midrex said the agreement extends the technical cooperation and test work that has been done over the past year on Vale’s proprietary briquetting technology. The technology employs a low-temperature process and chemical binders to agglomerate iron.

“Initial test results have shown promising results in using iron ore briquettes in the direct reduction process. Once the technology has been successfully demonstrated in Midrex plants, both partners plan to evaluate the creation of a joint venture to exclusively provide briquette technology and facilities to the market,” Midrex said.

Vale chief executive officer Eduardo Bartolomeo said the agreement is more than a technical collaboration. 

“It is the start of a partnership that will play a crucial role in scaling briquette technology to several markets,” he said. “This agreement is a recognition by one of the world’s leading suppliers of direct reduction technology of the briquette’s strong potential to decarbonize the global steel industry,” he added.