Volvo is working with Swedish steel maker SSAB in an effort to move to fossil-free steel for automotive production.

Volvo has been one of the automakers working to transition to an all-electric lineup, with the company planning on completing the transition by 2030. Not content to stop there, the company is looking to reduce its carbon footprint even further by exploring fossil-free steel — steel made with electricity and hydrogen energy instead of coal-fueled furnaces.

SSAB is working to bring commercial scale fossil-free steel to the market by 2026, and Volvo is wasting no time exploring its viability for auto production.

“As we continuously reduce our total carbon footprint, we know that steel is a major area for further progress,” said Håkan Samuelsson, chief executive at Volvo Cars. “The collaboration with SSAB on fossil-free steel development could give significant emission reductions in our supply chain.”

“We are building an entirely fossil-free value chain all the way to the end customer,” Martin Lindqvist, President and CEO at SSAB said. “Our breakthrough technology has virtually no carbon footprint and will help strengthen our customer´s competitiveness. Together with Volvo Cars, we aim to develop fossil-free steel products for the cars of the future.”