Swedish steelmaker SSAB AB is teaming up with Volvo Cars to develop fossil-free steel for use in the automotive industry.
Volvo Cars will be the first carmaker to secure the greener steel, SSAB said on Wednesday. Volvo Cars will use the material for testing and possibly in a concept car, it said.
The project is about cutting carbon emissions to supply an increasing number of consumers looking for a car that is as sustainable as possible, said Kerstin Enochsson, global head of procurement.
The steel is made from hydrogen-reduced iron from a pilot plant in Lulea, Sweden. The Hybrit project, run by SSAB with iron ore producer LKAB and utility Vattenfall, seeks to remove fossil fuels from the highly polluting steel-making value chain by replacing coking coal with hydrogen and clean energy. Commercial scale production is set to start in 2026.
SSAB has already announced a similar collaboration with Volvo AB, a maker of trucks. It will focus on existing strategic partnerships, said CEO Martin Lindqvist said.
“It’s possible there’s room for one or two more, but not much more.”
“The supply is limited, but we see that an increased demand will come, and with this comes an increased supply of green steel,” Enochsson said.
Steel is “an important piece of the puzzle” to help meet sustainability goals, she said.
“We have to show it’s possible.”
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