Volvo Group and SSAB signed a collaboration agreement on research, development, serial production and commercialization of the world's first vehicles to be made of fossil-free steel. Volvo will start manufacturing the first concept vehicles and machines with steel from SSAB using hydrogen in 2021. Plans call for smaller-scale serial production to start during 2022 and for a gradual escalation toward mass production to follow. Volvo and SSAB will also work together in research and development to optimize the use of steel in Volvo’s products with regard to weight and quality. The two companies plan to develop a number of products of fossil-free steel with the goal of reaching serial production within a few years.
Newly made fossil-free steel from SSAB will be an important complement to the traditional and recycled steel used in Volvo’s trucks, construction equipment and other products. Fossil-free steel will be made by a new technology using fossil-free electricity and hydrogen. The result will be a much lower climate impact and a fossil-free value chain.
SSAB aims to start supplying the market with fossil-free steel at a commercial scale in 2026. A pilot plant has been in place since August 2020, and it will soon start to produce smaller volumes of sponge iron made using hydrogen. This steel will be used to make the steel for use in the collaboration with Volvo.