Volvo to explore fossil-free steel with Swedish steelmaker SSAB

The collaboration makes Volvo the first car maker to work with SSAB and its HYBRIT initiative.

HYBRIT was started by SSAB, iron ore producer LKAB and energy firm Vattenfall. It aims to replace coking coal, traditionally needed for iron ore-based steelmaking, with fossil-free electricity and hydrogen. The result is expected to be the world’s first fossil-free steelmaking technology, with virtually no carbon footprint.

As part of the collaboration, Volvo will be the first car maker to secure SSAB steel made from hydrogen-reduced iron from HYBRIT’s pilot plant in Luleå, Sweden. This steel will be used for testing purposes and may be used in a concept car.

In 2026, SSAB aims to supply the market with fossil-free steel at a commercial scale. Volvo Cars aims to also be the first car maker to use fossil-free steel for its own production cars.

“As we continuously reduce our total carbon footprint, we know that steel is a major area for further progress,” said Håkan Samuelsson, chief executive at Volvo. “The collaboration with SSAB on fossil-free steel development could give significant emission reductions in our supply chain.”

“We are building an entirely fossil-free value chain all the way to the end customer,” Martin Lindqvist, president and CEO at SSAB, added: “Our breakthrough technology has virtually no carbon footprint and will help strengthen our customer’s competitiveness. Together with Volvo Cars, we aim to develop fossil-free steel products for the cars of the future.”

The global steel industry accounts for around 7% of global direct carbon emissions, due to the fact that the industry is currently dominated by an iron ore-based steelmaking technology, using blast furnaces depending on coking coal.

For Volvo, the CO2 emissions related to steel and iron production for its cars amount to around 35% in a traditionally powered car and 20% in a fully electric car of the total CO2 emissions from the material and production of the components going into the car.

Volvo www.volvocars.com