Volvo to Use Fossil-Free Steel in Concept Car

Volvo's Pursuit of Climate Neutrality Through Sustainable Steel

Volvo Cars is committed to achieving climate neutrality by 2040, and a key focus of this ambition lies in addressing the carbon footprint of steel, a notoriously challenging component to decarbonize. A collaboration has been established with SSAB, a Swedish company specializing in the production of "fossil-free" steel.

The Challenge of Decarbonizing Steel

The automotive industry views creating a climate-neutral vehicle as a significant undertaking, largely due to the difficulties associated with reducing emissions from materials like steel. The global steel industry, fundamental to industrialized economies, is responsible for approximately 8% of worldwide carbon emissions.

Within vehicles, the production of steel and iron contributes around 35% of emissions in internal combustion engine cars and 20% in battery electric vehicles.

Focus on the Supply Chain

According to Kerstin Enochsson, Volvo’s head of procurement, the most substantial CO₂ reductions in vehicle manufacturing will come from sustainable supply chains. She emphasized the importance of addressing emissions related to steel, aluminum, and the factories producing these materials.

SSAB's Innovative Approach

Recent advancements in green hydrogen production are paving the way for the viability of fossil-free steel. SSAB has pioneered a process utilizing hydrogen, instead of coal, in steel manufacturing.

This hydrogen is generated through electrolysis, a method that employs renewable energy to separate water into its constituent elements: hydrogen and oxygen.

Pilot Plant and Future Commercialization

The initial production of this steel will occur at a pilot plant located in Luleå, Sweden. This facility is a product of SSAB’s HYBRIT initiative, a joint venture involving Swedish utility Vattenfall and mining company LKAB.

SSAB anticipates becoming a commercial-scale supplier of decarbonized steel by the year 2026.

Volvo's Testing and Long-Term Vision

Upon receiving the material, Volvo will rigorously evaluate its properties, including its durability and resistance to heat, as explained by Enochsson. The initial quantity of steel received from SSAB will be sufficient for a project, rather than large-scale production.

However, Volvo is already planning for the future, considering how to scale up the use of fossil-free steel beyond a concept car. Industrialization plans will be contingent on the performance characteristics of the new steel.

Cost and Consumer Demand

While it is currently uncertain whether the transition to decarbonized steel will increase vehicle costs, Enochsson believes that sustainability is a crucial consideration for consumers. Volvo is also engaged in discussions with other manufacturers of sustainable steel, though details of these conversations remain confidential.

Industry-Wide Movement Towards Sustainability

Volvo is not alone in its pursuit of sustainable supply chains. Polestar, the electric vehicle brand originating from Volvo Car Group, aims to create a climate-neutral car by 2030.

Similarly, EV startup Fisker has established a goal of achieving climate neutrality by 2027.

“This is definitely a movement,” Enochsson stated, noting the increasing demand from original equipment manufacturers (OEMs) for higher sustainability targets and the positive direction of the industry.

She acknowledged the significant effort required to secure these sustainable materials across the entire supply chain.