Gestamp buys carbon-free steel from SSAB

Gestamp has signed an agreement with Swedish steelmaker SSAB to purchase fossil fuel-free steel for the production of body and chassis systems, officials from the Spanish auto components company said.
According to Gestamp, the agreement represents a new step in a multi-year partnership with SSAB, which includes a number of activities covering all aspects of the development chain: from sales to production and testing of steel products.

“This partnership will further strengthen our position in developing innovative and environmentally friendly automotive parts for safer and lighter vehicles, thereby reducing energy consumption and environmental impact,” says Gestamp purchasing director Javier Imaz. “The agreement ensures compliance with Gestamp’s ESG strategy, linked to the circular economy, which the company applies to its business model.”

SSAB plans to bring fossil fuel-free steel to market on a commercial scale in 2026 and to substantially eliminate CO2 emissions from its operations by 2030. The steel production process will replace coking coal with renewable electricity and hydrogen.