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Mercedes-Benz teams up with SSAB to explore fossil fuel-free steel for cars

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FILE PHOTO: The Mercedes-Benz logo is seen on a car in front of the Mercedes-Benz Museum in Stuttgart

BENGALURU (Reuters) - Swedish steelmaker SSAB said on Wednesday it had partnered with Daimler's Mercedes-Benz to introduce fossil fuel-free steel into vehicle production, with prototype parts for body shells planned for next year.

SSAB plans to supply the market with fossil-free steel at a commercial scale in 2026, using the HYBRIT system to replace coking coal, traditionally needed for iron ore-based steelmaking, with electricity and hydrogen.

Green steel venture HYBRIT (Hydrogen Breakthrough Ironmaking Technology) is created and owned by SSAB, Swedish state-owned utility Vattenfall and Swedish miner LKAB.

Mercedes-Benz expects that by 2039 its new passenger car fleet will become carbon dioxide-neutral along the entire value chain.

SSAB had in June partnered with Volvo Cars to jointly explore the development of fossil-free steel for use in the automotive industry.

(Reporting by Supantha Mukherjee, Editing by Louise Heavens)

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