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Bloomberg
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 in a statement on Wednesday. Volvo Cars will use the material for testing and possibly in a concept car, it said.
For the automaker, the project is about cutting carbon emissions to supply an increasing number of consumers looking for a car that’s 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 announced a similar collaboration with Volvo AB, a maker of trucks. It will now focus on existing strategic partnerships, CEO  Martin Lindqvist said.