SSAB and Rheinmetall agree fossil-free steel supply, marking first use in defence manufacturing

By Martin Chomsky (Defence Industry Europe)

Germany’s armed forces, the Bundeswehr, has placed a major order with Rheinmetall for the delivery of more than 1,000 logistic vehicles. The contract, valued at approximately €770 million gross, underscores the ongoing modernisation of the Bundeswehr’s logistics capabilities.
Photo: Rheinmetall.

SSAB and the German defence and technology group Rheinmetall have signed a letter of intent covering the supply of fossil-free steel. Under the agreement, Rheinmetall becomes the first defence equipment manufacturer to introduce decarbonised steel into its production, signalling a shift towards more sustainable defence products.

 

The cooperation will start with deliveries of SSAB Zero, with volumes expected to grow over time. At a later stage, supplies will also include SSAB Fossil-free™ steel produced using HYBRIT® technology.

“This is great news and a strong signal from both companies. Together, we’re committed to meet the demand for CO2 reductions from both producers and customers,” says Per Elfgren, Head of SSAB Special Steels. The companies say the partnership reflects rising demand for lower-emission materials from both industrial customers and end users.

SSAB Zero™ is produced from recycled steel using fossil-free energy, resulting in virtually zero fossil carbon emissions without affecting quality or performance. SSAB Fossil-free™ steel, first produced as a proof of concept in 2021, uses hydrogen-reduced sponge iron, with water replacing carbon dioxide as the main by-product.

SSAB operates production facilities in Sweden, Finland and the United States and supplies steel products globally. The company says its decarbonised steel portfolio is intended to support a broader transformation of the steel value chain, from raw materials to end customers.

 

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