Volvo announced that it has partnered with the Swedish steel manufacturer 'SSAB.' SSAB, which stands for Swedish Steel in English, has discovered a new method of steel production that utilizes hydrogen and electric energy, rather than fossil fuels as per the traditional method. This results in a sustainable "green steel" with equal structural integrity to its traditional counterpart.
Volvo will use SSAB's green steel in its upcoming electric vehicles and electric trucks as part of the automaker's commitment to the Paris agreement on climate change, meaning it is aiming to achieve net-zero emissions across its entire value-chain by 2040. Additionally, the company's partners, such as Amazon and DFDS, have committed to the same goal of 2040, meaning the adoption of green steel will greatly reduce emissions caused by supply and value chains in several regions.
Fossil Fuel-Free Steel Materials
Volvo Partnered with 'SSAB' to use Sustainable Steel in its EVs
Trend Themes
1. Green Steel Production - Opportunities for companies to invest in and develop more sustainable steel production methods using hydrogen and electric energy rather than fossil fuels.
2. Electric Vehicles - More automobile companies are beginning to adopt green steel in their electric vehicles and electric trucks to reduce emissions in their supply and value chains.
3. Net-zero Emissions Commitments - Companies are committing to achieving net-zero emissions by 2040, which is driving the adoption of sustainable steel and other emission-reducing strategies.
Industry Implications
1. Automotive - The automotive industry can explore the incorporation of sustainable steel in their electric vehicles, thus, reducing emissions and contributing to environmental sustainability.
2. Steel Manufacturing - The steel industry can invest in and develop more sustainable and environmentally-friendly production methods to meet the increasing demand for green steel.
3. Logistics and Supply Chain - Companies in the logistics and supply chain industry can adopt green steel and other sustainable production methods in their value chains to reduce emissions and contribute to a cleaner environment.