Earlier this week, the Volvo Group revealed the world’s first vehicle made of “fossil-free” steel from Nordic and U.S.-based steel company SSAB, with more vehicles to follow in 2022 in what will be a series of concept vehicles and components using the material.

The concept machine, a load carrier for use in mining and quarrying, was unveiled at a “green steel” collaboration event in Gothenburg hosted by Martin Lundstedt, President and CEO, Volvo Group. Signaling the importance of the launch, he was joined by EU Commissioner for Internal Market, Thierry Breton; Swedish Minister of Enterprise and Innovation, Ibrahim Baylan; and Martin Lindqvist, CEO, SSAB.

“This initiative with SSAB sets the benchmark for a fossil-free future,” said Lundstedt. “Just as the nations of the world come together at COP26 to address climate change, so too must organizations and industries work in collaboration to develop innovative new solutions for a greenhouse gas emission-free future. Volvo Group is committed to pioneering partnerships such as this with SSAB to develop attractive, safe, and efficient new vehicles and machines that pave the way for a more sustainable transport and infrastructure system adopted for the future.”

Volvo Group is on the path towards developing sustainable transport and infrastructure solutions, with a commitment to be climate-neutral and achieve net-zero value-chain greenhouse gas emissions by 2040. Along with the electrification of its vehicles and machines, the company is determined to reduce the carbon footprint of its entire supply chain, and it says that this latest steel innovation is one step forward on this path.

“Having the world’s first actual vehicle made using SSAB´s fossil-free steel is a true milestone,” said Lindqvist. “Our collaboration with Volvo Group shows that green transition is possible and brings results. Together, we will continue reducing climate impact all the way to the end customer while ensuring that our customers get high-quality steel.”

A move toward “green steel” is an important step for Volvo Group, as well as for the transport and infrastructure industries, particularly considering that around 70% of a truck’s weight comes from steel and cast iron, with the figure for Volvo machines even higher. This first concept machine, produced at Volvo CE’s facility in Braås, is just the start, with smaller-scale series production planned by 2022 and mass production set to follow.

The global steel industry accounts for around 7% of global direct carbon emissions because it is currently dominated by an iron ore-based steel-making technology, using blast furnaces that depend on coking coal. In 2026, SSAB plans to supply the market with fossil-free steel at a commercial scale after conversion of its Oxelösund blast furnaces into electric arc furnaces and by using the HYBRIT technology, replacing the coking coal with fossil-free electricity and hydrogen. This process is a move toward virtually eliminating carbon dioxide emissions in steel production.

In August 2021, SSAB showed the world´s first fossil-free steel plate made from hydrogen-reduced iron produced at HYBRIT’s pilot plant in Luleå, Sweden. The HYBRIT initiative is a collaboration between SSAB, iron ore producer LKAB, and energy firm Vattenfall, and an essential step toward a completely fossil-free value chain for steelmaking.

“By industrializing this technology in the future and making the transition to the production of sponge iron on an industrial scale, we will enable the steel industry to make the transition,” said Jan Moström, President and CEO of LKAB.

“Electrification is contributing to making fossil-free living possible within one generation,” added Anna Borg, President and CEO of Vattenfall.

The goal is to deliver fossil-free steel to the market and demonstrate the technology on an industrial scale as early as 2026. Using HYBRIT technology, SSAB has the potential to reduce Sweden’s total carbon dioxide emissions by about 10% and Finland’s by about 7%.

“We’ll be converting to electric arc furnace in Oxelösund as early as 2025,” said Johnny Sjöström, Head of SSAB Special Steels Division. “This is the first production site within SSAB to make the transition, and it means that we’ll already be cutting large amounts of carbon dioxide emissions then.”

The month before, SSAB Oxelösund rolled the first steel produced using HYBRIT technology, reduced by 100% fossil-free hydrogen instead of coal and coke, and delivered to the first customer, the Volvo Group.

SSAB has already garnered a lot of interest from other vehicle-related partners for its fossil-free steel.

In June, the company announced a collaboration with Volvo Cars (not part of the Volvo Group), which will be the first carmaker to secure SSAB steel made from hydrogen-reduced iron from the HYBRIT pilot plant in Luleå, Sweden. This steel will be used for testing purposes and may be used in a concept car, but ultimately Volvo Cars aims to be the first carmaker to use fossil-free steel in car production.

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

For Volvo Cars, the CO2 emissions related to steel and iron production 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.

SSAB and Mercedes-Benz are launching a partnership to introduce fossil-free steel into vehicle production as early as possible: The first prototype parts for body shells are already being planned for next year. Mercedes-Benz has pledged that its new passenger car fleet will become carbon dioxide-neutral along the entire value chain by 2039.

Faurecia, the first auto supplier to explore fossil-free steel with SSAB, plans to start equipping its seating structures from 2026. Cargotec will work toward the use of SSAB’s fossil-free steel in Cargotec’s cargo-handling equipment.