STOCKHOLM, June 16 (Reuters) - Swedish steelmaker SSAB (SSABa.ST) said on Wednesday it had agreed with Volvo Cars to jointly explore the development of fossil-free steel for use in the automotive industry.
The Swedish carmaker, owned by China's Geely Holding [RIC:RIC:GEELY.UL], will be the first car maker to source steel from green steel venture HYBRIT, which is owned by SSAB, Swedish state-owned utility Vattenfall and Swedish miner LKAB.
"This steel will be used for testing purposes and may be used in a concept car," SSAB said in a statement.
The HYBRIT project last year began test operations in Sweden to replace coking coal, traditionally needed for ore-based steel making, with fossil-free electricity and hydrogen, which in turn is produced using only renewable power. It aims for a demonstration plant to be ready in 2026. L8N2FX3LV
"Together with Volvo Cars, we aim to develop fossil-free steel products for cars of the future," SSAB said, adding that Volvo Cars aimed to be the first carmaker to use fossil-free steel for its own actual car production.
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