Swedish steelmaker SSAB AB [SSABA:SS] has announced a EUR4.5bn (USD4.83bn) investment to build a fossil-free mini mill in Lulea, Sweden, as reported by Reuters on April 2. The company said the new plant features lower fixed costs, higher efficiency, shorter delivery times, as well as eliminated carbon dioxide (CO2) costs. Specifically, the factory will utilize raw materials including fossil-free sponge iron from the steelmaker’s Hybrit demonstration plant in Gallivare and recycled scrap. It is expected to start production by the end of 2028 and operate at full capacity one year later, with a planned annual output of 2.5 million tons. Upon completion, SSAB will shut down its current blast furnace-based production system. The move is anticipated to result in a 7% reduction in Sweden’s total CO2 emissions.

As the largest carbon emitter in Sweden, SSAB is bracing for a full-scale transition towards fossil-freeoperation, in alignment with the country’s broader target to achieve net-zero emissions by 2045. Last year, SSABalso announced the decision to switch to fossil-free production at a plant at Oxelosund, Sweden, expected to eliminate Sweden’s CO2 emissions by an additional 3%. However, the market has raised concerns about the substantial additional spending on the firm’s fossil-freeconversion, particularly over the next four years, given alack of government support. SSAB remains optimistic about the long-term growth from its shift to carbon-free metals production, envisioning an annual profit uplift of at least SEK10bn (USD930m) from 2030.