Volvo Group and SSAB are joining forces around the development of sustainable steel. This involves steel produced without the use of fossil fuels. The parties are deploying hydrogen and fossil-free electricity for this purpose.
The parties want to jointly launch the first vehicles made of fossil-free steel. Production of the first concept vehicles should start this year. Small-scale serial production should then take place from 2022. After that, a gradual move towards scaling up production capacity will be made.
To make this possible, Volvo Group and SSAB will jointly research fossil-free steel. This will include looking at the use of steel in Volvo products. The parties will zoom in specifically on quality and weight.
Climate neutral operations
The commitment is part of Volvo Group's aim to be completely climate neutral by 2050. For example, fossil-free steel is produced using fossil-free electricity and hydrogen. This reduces the environmental impact of the production process. And also ensures a fossil-free value chain. Volvo Group and SSAB point out that demand for steel is expected to increase significantly in the long term. Fossil-free steel helps meet this demand.
"We are determined to be a climate neutral company by 2050 in line with the Paris Climate Agreement. This means that our vehicles and machinery will be emission-free in use. But also that we assess the materials we use in our products such as steel and gradually switch to fossil-free alternatives. This is an important step towards fully climate-neutral transport," said Martin Lundstedt, president and CEO of Volvo Group.
'Big step forward'
Martin Linqvist, president and CEO of SSAB: "We are now taking a big step forward towards a completely fossil-free value chain towards the end customer. Together with Volvo Group, we are working on the development and mass production of fossil-free steel products. With our customers, we are working together to reduce their impact on the environment. And increasing their competitiveness. We are constantly looking at how we can be a more advanced supplier of fossil-free steel for customers like Volvo. We see a new green revolution emerging."
SSAB aims to market fossil-free steel on a commercial scale from 2026. The party has been working with LKAB and Vattenfall since 2016 within the HYBRIT initiative on a framework for a fossil-free value chain from mine to final steel product.
Part of the collaboration with Volvo also includes logistics solutions that can help reduce the environmental impact of both internal and external transport of SSAB. This specifically looks at using Volvo vehicles powered by battery packs and fuel cells.
Joint venture with Daimler Truck
Earlier this year, Volvo Group also announced a joint venture with Daimler Truck. Cellcentric focuses on large-scale production of fuel cells, which are mainly intended for applications in heavy trucks. The parties hope to bring these fuel cells to market in the second half of the 20s.
Author: Wouter Hoeffnagel
