Volvo Cars to be the first automaker to explore green steel with SSAB

SSAB is building a complete fossil-free value chain all the way down to customers using hydrogen as a key tool to decarbonise its steel production process.

Ssab and Volvo Cars will join hands for developing fossil-free steel for application in the automotive industry, H2 Bulletin reports.

The collaboration will make Volvo Cars the first carmaker using SSAB fossil-free steel produced by using hydrogen-reduced iron at the Hybrit pilot plant in Luleå, Sweden. The steel will be used for testing purposes and may be used in a concept car.

Martin Lindqvist, CEO at SSAB, said, “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 cars of the future.”

Håkan Samuelsson, CEO at Volvo Cars. “The collaboration with SSAB on fossil-free steel development could give significant emission reductions in our supply chain.”

It is assessed that the global steel industry accounts for around 7% of global direct carbon emissions due to its dependence on coking coal in the blast furnace route. SSAB aims to reduce Sweden’s emission by 10% and those in Finland by 7%, through Hybrit technology, using green hydrogen instead of coking coal.

For Volvo Cars, the CO2 emissions linked to steel and iron production for its cars is about 35% in internal combustion engine car and 20% in a fully electric car of the total emissions from all the material and production of parts used in the car. SSAB plans to start supplying fossil-free steel at a commercial scale in 2026, whereas Volvo Cars aim to be the first carmaker to use fossil-free steel for its actual car production.

The Hybrit initiative started by SSAB, LKAB and Vattenfall aiming to replace coking coal in steelmaking with clean electricity and hydrogen.

Ethan Mandel

Ethan is the special correspondent for Europe covering the hydrogen industry for H2 Bulletin. Please click on the email icon to contact me via email or follow me on social media. I am reachable on Phone: +44 (0) 208 123 7812
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