Sweden-based global steel company SSAB announced today a partnership Mercedes-Benz to introduce fossil-free steel into its vehicle production as early as possible, with the first prototype parts for body shells made with the material planned for next year.

Steelmaking is one of the biggest emitters of CO2 globally, with total greenhouse gas emissions (GHG) from the sector accounting for 7% – 9% of direct emissions from the global use of fossil fuels. SSAB is one of the companies at the forefront of efforts to address the sector’s climate impact, through the HYBRIT initiative that it established in 2017 along with partners Vattenfall and LKAB, aiming to revolutionize steelmaking by replacing heavily polluting coking coal, with fossil-free electricity and hydrogen.

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The new partnership follows the goal announced earlier this year by SSAB to be the first steel company worldwide using HYBRIT technology to bring fossil-free steel to the global market by 2026 at commercial scale. SSAB launched a collaboration with Volvo Group in April aimed at producing vehicles made with fossil-free steel, and last month announced the world’s first delivery of fossil-free steel to Volvo.

Last year, Mercedes-Benz pledged to achieve a carbon neutral supply chain by 2039, with initiatives including adding climate neutrality in its contractual terms with suppliers, and ensuring sourcing of only production materials which are CO2 neutral . In May, the automaker committed to integrate green steel in vehicle models by 2025.

Martin Lindqvist, President and CEO of SSAB, said:

“We are extremely happy to welcome Mercedes-Benz as a partner for fossil-free steel products. Together, we are building an entirely fossil-free value chain all the way to the end customer. We are proud to reduce global carbon dioxide-emissions in collaboration with our new partner.”