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Sandvik Mining and Rock Solutions and global steel company SSAB have signed a letter of intent to secure fossil-free steel.

The steel secured through this deal will initially be used in the production of Sandvik’s loaders and trucks.

“Sustainability is at the core of our business strategy,” Sandvik Mining and Solutions president Mats Eriksson said.

“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 (carbon dioxide) footprint.”

SSAB is working towards delivering fossil-free steel on a commercial scale during 2026. Its letter of intent with Sandvik ensures that Sandvik can receive its required volumes within SSAB’s production capacity.

“We’re excited about supporting the sustainability journey of our customers in the mining industry,” SSAB Special Steels head Johnny Sjostrom said.

“Fossil-free steel has the same high quality as traditional steel but with but with hardly any environmental impact. It will help to reduce our customers’ carbon footprint and offer a competitive advantage in the market.”

As a fossil-free partner to SSAB, Sandvik may apply for early fossil-free sample deliveries of equipment pieces such as a prototype frame, a loader bucket or a truck box to be used in a demo or concept product.

SSAB has agreements in place to find ways to create fossil free steel, such as its partnership with Epiroc, which was expanded in June.

Sandvik Mining and Rock Solutions is a business area within the Sandvik Group, a global supplier of equipment and tools, parts, service, digital solutions and sustainability-driving technologies for the mining and construction industries.