Swedish steel company SSAB announced Wednesday that it has agreed with Volvo Cars to jointly develop fossil-free steel for use in the automotive industry.
The Swedish automaker, owned by China's Geely Holding, will be the first carmaker to purchase the environmentally friendly HYBRIT steel from SSAB, Swedish state-owned Vattenfall and Swedish mining company LKAB.
"This steel will be used for testing and can be used in a concept car," SSAB said in a statement.
Last year, the HYBRIT project began trials in Sweden to replace coking coal, traditionally required for steel production from ore, with electricity and hydrogen, which does not contain fossil hydrocarbons, which, in turn, is produced using only renewable energy sources. The demo plant is slated to be ready by 2026.
“Together with Volvo Cars, we are committed to developing stainless steel products for the cars of the future,” SSAB said, adding that Volvo Cars aims to be the first automaker to use fossil-free steel for its own car production.