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Volvo and SSAB collaborate on fossil-free steel

Volvo

Volvo Group and SSAB to work together on world’s first vehicles made from non-fossil fuel steel

VOLVO Group and Swedish steelmakers SSAB have signed a collaboration agreement on research, development, serial production and commercialization of the world’s first vehicles to be made from fossil-free steel.

‘We are determined to be a climate-neutral company by 2050 in line with the Paris Agreement,’ commented Martin Lundstedt, president and chief executive officer of Volvo Group.

‘This means that our vehicles and machines will be emission-free when in operation but also that we will review the materials, such as steel, used in our products and will gradually switch to fossil-free alternatives here as well. This is an important step on the road to completely climate-neutral transport.’

Martin Lindqvist, president and chief executive officer of SSAB, said: ‘We are now taking a giant leap towards an entirely fossil-free value chain all the way to the end customer. Together with Volvo Group, we will start work on the development and serial production of fossil-free steel products.

‘We will work together with our customers to reduce their climate impact while strengthening their competitiveness. We are constantly looking at how we can become a more comprehensive supplier of fossil-free steel to customers such as Volvo. We see a new green revolution emerging.’

Later this year, Volvo will start manufacturing the first concept vehicles and components utilizing SSAB steel made using hydrogen. Plans for small-scale serial production will be made during 2022 and a gradual escalation towards mass production will follow.

Volvo and SSAB will also work together in research and development to optimize the use of steel in Volvo’s products with regard to weight and quality. Together, the two companies will develop a number of products of fossil-free steel with the goal of reaching serial production within a few years.

Newly made fossil-free steel from SSAB will be an important complement to the traditional and recycled steel used in Volvo’s trucks, construction equipment and other products. Fossil-free steel will be made by a completely new technology using fossil-free electricity and hydrogen.

The result will be a much lower climate impact and a fossil-free value chain. The steel industry considers that the need for steel will grow significantly in the long term and that newly made fossil-free steel will be needed to meet this demand.

The collaboration framework also includes a review of common logistics solutions that can contribute to reducing SSAB’s environmental impact from internal and external transport. The ambition is to use Volvo vehicles that are powered by batteries or fuel cells.

SSAB say they aim to start supplying the market with fossil-free steel at a commercial scale in 2026.

Development of a fossil-free value chain from mine to finished steel products will take place within the framework of the HYBRIT initiative, which SSAB have been driving with LKAB and Vattenfall since 2016.

A pilot plant has been in place since August 2020 and this will soon start to produce smaller volumes of sponge iron made using hydrogen. This will be used to make the steel for use in the collaboration with Volvo Group.

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