Scania and SSAB have signed a letter of intent to decarbonise all steel deliveries from SSAB destined for the manufacture of Scania’s heavy-duty vehicles in 2030. Deliveries of SSABs Fossil-free™ steel is targeted to ramp up rapidly from a modest start in 2026 and will play a key role in the shift towards a sustainable transport system.

SSAB is Scania’s main supplier of steel for its vehicles. This next step in the long-standing relationship, caters for radically lowered climate emissions. The 100 percent ambition for decarbonised steel deliveries is among the boldest of intentions agreed between SSAB and a customer.

It also marks an ambitious plan within the First Movers Coalition, where Scania and SSAB are members, to reduce the carbon footprint in hard-to-abate sectors. Through this partnership, Scania and SSAB are committed to use their purchasing power to create early markets for innovative clean technologies.

“I’m glad and proud that we have reached this agreement. Scania’s purpose is to drive the shift towards a sustainable transport system. To fulfil that purpose, we are acting across the value chain together with partners such as SSAB, who are at the forefront of the transition to a sustainable steel industry,” says Christian Levin, CEO at Scania.

“We are truly looking forward to ramping up the deliveries of our fossil-free steel, thereby contributing to more sustainable value chains. Fossil-free steel will be a game-changer in heavy transport. It has the same high quality and technical properties as traditional steel. And, while being produced in a sustainable way, it can also be recycled just like steel has always been,” says Martin Lindqvist, CEO at SSAB.

Scania has outlined an industry-leading strategy to, by 2030, significantly reduce the carbon emissions within four “hotspots", constituting approximately 80 percent of the supply chain emissions: batteries, steel, aluminium and cast iron.

SSAB plans to deliver its Fossil-free™ steel to the market at commercial scale in 2026 and for its operations to be largely fossil-free around 2030. SSAB Fossil-free™ steel is manufactured using the HYBRIT technology, which replaces the coking coal traditionally used for iron ore-based steelmaking with fossil-free electricity and hydrogen. The by-product is water instead of carbon dioxide.