Sandvik and SSAB sign letter of intent for fossil-free steel

Sandvik Mining and Rock Solutions and steelmaker SSAB have signed a letter of intent to purchase fossil-free steel in the production of Sandvik loaders and trucks for the mining industry.

The letter of intent ensures that Sandvik will receive deliveries of fossil-free steel from SSAB within the company’s production capacity.

Sandvik can also apply for early fossil-free sample deliveries of, for example, a prototype frame, loader bucket or truck box to be used in a demo or concept product.

Sandvik Mining and Rock Solutions president of business Mats Eriksson says the partnership will allow it to reduce its carbon dioxide footprint.

“Sustainability is at the core of our business strategy, and as the market demand for fossil-free products will increase in the years ahead, this partnership will enable us to offer our mining customers solutions with a drastically reduced CO2 footprint,” he said.

SSAB delivered the first steel made of hydrogen-reduced iron in 2021.

The company works with iron ore producer LKAB to energy company Vattenfall to develop a value chain for fossil-free iron and steel production, replacing coking coal traditionally needed for iron ore-based steelmaking by fossil-free electricity and hydrogen. This process virtually eliminates carbon dioxide emissions in steel production.

SSAB head Johnny Sjöström says the company is excited to support the sustainability journey.

“Fossil-free steel has the same high-quality as traditional steel but with hardly any environmental impact,” he said.

“It will help reduce our customers’ carbon footprint and offer a competitive advantage in the market.”