Volvo Group and SSAB have 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 plans already this year to start the production of concept vehicles and components from steel made by SSAB using hydrogen. Volvo will start on manufacturing the first concept vehicles and machines with steel from SSAB using hydrogen already in 2021. Plans for smaller-scale serial production will be made during 2022 and a gradual escalation towards mass production will 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. Together, the two companies will 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 completely new technology using fossil-free electricity and hydrogen. The result will be a much lower climate impact and a fossil-free value chain. The steel industry considers that the need for steel will grow significantly in the long term and that newly made fossil-free steel will be needed to meet this demand. The collaboration framework also includes a review of common logistics solutions that can contribute to reducing SSAB’s environmental impact from internal and external transports. The ambition is to use Volvo vehicles that are powered by batteries or fuel cells. SSAB aims to start supplying the market with fossil-free steel at a commercial scale in 2026. Development of a fossil-free value chain from mine to finished steel products will take place within the framework of the HYBRIT initiative, which SSAB has been driving with LKAB and Vattenfall since 2016. A pilot plant has been in place since August 2020 and this 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 this collaboration.