Swedish truck manufacturer Volvo and steel manufacturer SSAB have signed an agreement to build the world's first vehicles from fossil-free steel, says joint statement companies.
Volvo plans to begin production of prototype vehicles and components this year from steel produced by SSAB using hydrogen sourced from renewable energy sources. Small-scale production will begin in 2022.
“This is an important step towards a completely climate-neutral vehicle,” said Volvo CEO Martin Lundstädt.
Volvo said its cars will run emission-free, without specifying which engine type will be used, and added that the company is studying all materials used in the construction of the car to exclude anything that is produced with fossil fuels.
The source of the steel will be the environmentally friendly HYBRIT steel plant, which is owned by SSAB, the Swedish state-owned company Vattenfall and the Swedish mining company LKAB.
Last August, the company began trial smelting of green steel in Luleå, Sweden, from iron ore processed with electricity and fossil-free hydrogen, which in turn is produced using only renewable energy sources.