The Future Of Steel: Volvo Cars And SSAB Explores Fossil-Free Steel

Teaming up with Swedish steelmaker SSAB, Volvo Cars is set to explore the development of fossil-free, high-quality steel in the automotive industry. 

This results in Volvo Cars being the first automaker to collaborate with SSAB and its HYBRIT initiative - the steel industry’s most advanced projects in fossil-free steel development. 

Initiated by SSAB, iron ore producer LKAB and energy firm Vattenfall, HYBRIT aims to replace coking coal, traditionally used for iron ore-based steelmaking, alongside fossil-free electricity and hydrogen. The result? This project would possibly be the world’s first fossil-free steelmaking technology, with virtually no carbon footprint.

Additionally, Volvo Cars will also be the first automaker to secure SSAB steel, made from hydrogen-reduced iron from HYBRIT’s pilot plant in Luleå, Sweden, which would be used for testing purposes and likely in a concept car. 

SSAB aims to supply the market with fossil-free steel at a commercial scale by 2026. On the other hand, Volvo Cars also seeks to be the first automaker to use this steel in car production. 

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

“We are building an entirely fossil-free value chain all the way to the end customer. 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.” added SSAB president and chief executive officer Martin Lindqvist. 

It is noted that the global steel industry accounts for approximately 7 percent of global direct carbon emissions. A big reason for this is that the industry is swarmed by iron-ore based steel making technologies, using blast furnaces depending on coking coal. 

This venture is Volvo’s latest initiative in the overall climate action plan, which is one of the most ambitious car industries. The automaker’s centrepiece is to be a fully electric brand by 2030, with only pure electric cars in its portfolio. 

SSAB is set to reduce Sweden’s CO2 emissions by 10 percent and those in Finland by 7 percent with the HYBRIT technology - using hydrogen produced from water and fossil-free electricity instead of coking coal. 

Volvo Cars aims to be a climate-neutral company by 2040, with goals of reducing the life cycle carbon footprint per car by 40 percent between 2018 and 2025.