SSAB Signs Agreement to Supply Decarbonised Steel to Rheinmetall
SSAB has signed a preliminary agreement to supply decarbonised steel to Rheinmetall, marking the latter as the first defence producer to use this material. The steel, known as SSAB Zero, is produced using fossil fuel-free electricity, with future deliveries expected to utilize SSAB's hydrogen-reduced sponge iron process. SSAB is transitioning to nearly zero-emission steel production at its Lulea site, supported by a €128 million grant from the European Commission, with plans to install an electric arc furnace by 2029.
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SSAB has signed a preliminary agreement with Rheinmetall to supply decarbonised steel, making Rheinmetall the first defence producer to utilize this material. The initial shipments' timing is not set, but SSAB is planning for implementation.
Rheinmetall will receive SSAB Zero steel, produced using fossil fuel-free electricity, with future deliveries expected to include material from SSAB's HYBRIT process, which uses hydrogen-reduced sponge iron. In 2024, SSAB received a €128 million grant from the European Commission to transition from coal-based to nearly zero-emission steel production at its Lulea site.
The company plans to install an electric arc furnace, originally expected to start in 2028 but postponed to 2029 due to electricity supply delays. Additionally, Swedish steelmaker Stegra has pre-sold over half of its planned 2.5 million t/yr output ahead of first deliveries in 2027.
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