Charles R. Goulding and Preeti Sulibhavi explore how the Nippon–U.S. Steel partnership and cutting-edge 3D printing are transforming American manufacturing from the ground up.
The recently approved US$14 billion partnership between Nippon Steel and U.S. Steel is more than a financial infusion; it’s a strategic move poised to revolutionize the American steel industry through advanced technologies like additive manufacturing (AM), commonly known as 3D printing. This proposed collaboration not only revitalizes U.S. Steel but also sets a precedent for other major players—Nucor, Steel Dynamics, and Cleveland-Cliffs—to integrate AM into their operations, enhancing efficiency and competitiveness.
The proposed collaboration will guarantee an American CEO, a majority of U.S. Board members, and U.S. government approval over certain functions.
Nippon Steel: Pioneering Additive Manufacturing
Nippon Steel has been at the forefront of integrating 3D printing into its manufacturing processes. A notable example is the collaboration with MADIT, where they produced a 3D printed impeller for Nippon Gases. This component achieved a 55% weight reduction and a 40% cost saving compared to traditional designs, showcasing the tangible benefits of AM in industrial applications.
Further extending its commitment to smart manufacturing, ArcelorMittal Nippon Steel India (AM/NS India) partnered with Schneider Electric to establish a smart manufacturing campus in Ahmedabad. This initiative includes the New Age Makers Institute of Technology (NAMTECH), focusing on advanced manufacturing education, including additive manufacturing.
U.S. Steel: Embracing a Digital Future
U.S. Steel’s collaboration with Nippon Steel positions it to leverage advanced manufacturing technologies. While specific AM initiatives by U.S. Steel have not been publicly detailed, the partnership provides access to Nippon Steel’s expertise in 3D printing, potentially accelerating U.S. Steel’s adoption of AM for producing complex components and reducing production lead times.
Nucor: Innovating Through Education and Rapid Prototyping
Nucor Corporation, America’s largest steel producer, has demonstrated a commitment to innovation through additive manufacturing. In 2020, Nucor engineers in West Seattle utilized 3D printers to produce NIH-approved face shields during the COVID-19 pandemic, highlighting the company’s agility in rapid prototyping.
Additionally, Nucor received a US$40,000 grant to fund 3D printing education programs for local schools in Norfolk, Nebraska. This initiative aims to connect students with future careers in manufacturing and engineering, fostering a new generation skilled in AM technologies.
Government Incentives Fueling Additive Manufacturing Growth
Recent changes in U.S. tax laws, including enhanced plant and equipment deductions and improved R&D tax incentives, support investments in additive manufacturing. These incentives make it financially viable for steel companies to adopt AM technologies, fostering innovation and competitiveness in the industry.
The Research & Development Tax Credit
The now permanent Research and Development (R&D) Tax Credit is available for companies developing new or improved products, processes and/or software.
3D printing can help boost a company’s R&D Tax Credits. Wages for technical employees creating, testing and revising 3D printed prototypes are typically eligible expenses toward the R&D Tax Credit. Similarly, when used as a method of improving a process, time spent integrating 3D printing hardware and software can also be an eligible R&D expense. Lastly, when used for modeling and preproduction, the costs of filaments consumed during the development process may also be recovered.
Whether it is used for creating and testing prototypes or for final production, 3D printing is a great indicator that R&D Credit-eligible activities are taking place. Companies implementing this technology at any point should consider taking advantage of R&D Tax Credits.
Conclusion
The Nippon Steel and U.S. Steel partnership marks a significant step toward modernizing the American steel industry. By embracing additive manufacturing, steel companies can achieve greater efficiency, reduce costs, and produce complex components with precision. As government incentives align with technological advancements, the integration of 3D printing positions the U.S. steel industry for a resilient and innovative future.
