The company plans to initially use the fossil-free steel in the production of its loaders and trucks.
SSAB is planning to start commercial-scale delivery of fossil-free steel to the market during 2026.
Sandvik Mining and Rock Solutions president Mats Eriksson said: “Sustainability is at the core of our business strategy.
“As the market demand for fossil-free products increases in the years ahead, this partnership will enable us to offer our mining customers solutions with a drastically reduced CO₂ footprint.”
As SSAB’s fossil-free partner, Sandvik can seek early fossil-free sample deliveries such as a prototype frame, loader bucket or truck box, for use in a demo or concept product.
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SSAB special steels head Johnny Sjöström said: “Fossil-free steel has the same high quality as traditional steel but with hardly any environmental impact. It will help to reduce our customers’ carbon footprint and offer a competitive advantage in the market.”
The initiative aims to develop a value chain for fossil-free iron and steel production by replacing coking coal with fossil-free electricity and hydrogen for iron ore-based steelmaking.
The process allows the production of steel while virtually eliminating carbon dioxide emissions in the process.
Last month, Sandvik unveiled a comprehensive automation platform, AutoMine Core, for large-scale mining operations.
It is designed to help customers transition from manual mining techniques to fully automated production processes.