STOCKHOLM, June 16 (Reuters) - Swedish steelmaker SSAB 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, 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.
"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.