Kobe Steel is considering installing a scrap-melting electric arc furnace at its Kakogawa Works in Japan as part of its decarbonisation strategy. The move would cut carbon dioxide emissions per metric ton of steel by up to eighty percent compared to current blast furnace production. Japan's carbon neutrality target for twenty fifty and growing pressure from automotive customers are driving the evaluation. The decision would mark one of the most significant technology transitions in the Japanese steel industry's history.