Swedish steel maker SSAB is teaming up with Volvo Cars to jointly explore the development of fossil free, high quality steel for use in the automotive industry. The collaboration makes Volvo Cars the first carmaker to work with SSAB and its HYBRIT initiative, the steel industry’s most ambitious and advanced project in fossil-free steel development. As part of the collaboration, Volvo Cars will be the first carmaker to secure SSAB steel made from hydrogen-reduced iron from the HYBRIT pilot plant in Luleå in Sweden. This steel will be used for testing purposes and may be used in a concept car. In 2026, SSAB aims to supply the market with fossil-free steel at a commercial scale. Volvo Cars aims to also be the first carmaker to use fossil-free steel for its own actual car production.

The HYBRIT initiative was started by SSAB, iron ore producer LKAB and energy firm Vattenfall. The initiative aims to replace coking coal, traditionally needed for iron ore-based steelmaking, with fossil-free electricity and hydrogen. The result is expected to be the world’s first fossil-free steelmaking technology, with virtually no carbon footprint. SSAB aims to reduce Sweden’s CO2 emissions by 10 % and those in Finland by 7 %, through HYBRIT technology, using hydrogen produced from water and fossil-free electricity instead of coking coal.

The collaboration with SSAB is the latest initiative that supports Volvo Cars overall climate action plan, one of the most ambitious in the car industry. The centrepiece of the plan is Volvo Cars ambition to be a fully electric car brand by 2030, with only pure electric cars in its line up. For Volvo Cars, the CO2 emissions related to steel and iron production for its cars amount to around 35 % in a traditionally powered car and 20 % in a fully electric car of the total CO2 emissions from the material and production of the components going into the car.

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