Benzinga | Dec 9, 2021 09:55PM EST

Goodyear, Monolith Tie-Up On Carbon Black Produced From Methane, Biomethane

* Goodyear Tire & Rubber Co (NASDAQ:GT) has signed a collaboration agreement and letter of intent with Monolith to develop and potentially use carbon black produced from methane and/or biomethane for tires. The financial terms of the arrangement were not disclosed.

* Carbon black is a key ingredient in tires, providing compounds in the tires with strength, improved tear resistance, and increased abrasion resistance. A typical consumer tire is 15-20% carbon black by weight.

* Goodyear noted traditional carbon black comes from the combustion of residual oil or coal tar oil.

* Monolith's plasma-based process takes advantage of renewable electricity to complete methane pyrolysis and results in the output of only carbon and hydrogen.

* Price Action: GT shares are trading higher by 2.02% at $22.7 on the last check Thursday.