Volvo, SSAB in Deal to Produce Vehicles Made of Fossil-Free Steel
By Dominic Chopping
STOCKHOLM--Truck maker Volvo AB said Thursday it has signed a
collaboration agreement with Swedish steel company SSAB AB on
research, development, serial production and commercialization of
vehicles made of fossil-free steel.
Volvo said it plans to start production of concept vehicles and
components from steel made by SSAB using fossil-free electricity
and hydrogen this year, with plans for smaller-scale serial
production to start during 2022 and a gradual escalation towards
mass production to follow.
"We are determined to be a climate-neutral company by 2050 in
line with the Paris Agreement," said Volvo Chief Executive Martin
"This means that our vehicles and machines will be emission-free
when in operation but also that we will review the materials, like
steel, used in our products and will gradually switch to
fossil-free alternatives here as well," he said.
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, Volvo said. Together, the two
companies will develop a number of products of fossil-free
The collaboration also includes a review of SSAB's environmental
impact from logistics, with an ambition to use Volvo vehicles that
are powered by batteries or fuel cells, Volvo said. SSAB aims to
start supplying the market with fossil-free steel on a commercial
scale in 2026.
Write to Dominic Chopping at firstname.lastname@example.org
(END) Dow Jones Newswires
April 08, 2021 03:18 ET (07:18 GMT)
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