Volvo Group announced Friday, April 8 that the company will partner with steel manufacturers SSAB to produce the world's first vehicles made with fossil-free steel. The steel will be made with a new technology that uses electricity and hydrogen not dependent on fossils.
Production is expected to begin on a small scale in 2022 and will gradually ramp up towards mass production. Serial production will likely be reached within a few years from this. Also, SSAB plans to commercially provide fossil-free steel by 2026.
Volvo Group aims to be completely climate-neutral by 2050 in alignment with The Paris Agreement, a legally-binding treaty between 196 countries to bring the global temperature below 2° C.
“We are now taking a giant leap towards an entirely fossil-free value chain all the way to the end customer… We see a new green revolution emerging,” Martin Lindqivst, CEO of SSAB, said.
This announcement also comes after Volvo shared their plans in March to manufacture only electric vehicles by 2030. The company is largely focused on sustainable operations in multiple areas of their production.
Demand for steel in the transportation sector is expected to spike significantly in the near future. Therefore, Volvo Group’s change in production could have a large impact on reducing carbon emissions and preserving fossil fuels.
“This is an important step on the road to completely climate-neutral transports,” Martin Lundstedt, President and CEO of Volvo Group, said.
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