The Luleå project was designated as a net-zero project by the EU in December 2024, receiving SEK 1.45 billion in funding from the EU, the Swedish Agency for Economic and Regional Growth, and the Just Transition Fund, the company said. SSAB is investing EUR 4.5 billion in the project.

“This recognition confirms that the investment in Luleå is strategically important for Europe’s industrial and climate transition. It gives us greater predictability in the remaining permitting processes and strengthens the execution of SSAB’s largest industrial transformation ever,” said Carl Orrling, chief technology officer and head of the transformation office at SSAB. 

SSAB said the Rheinmetall agreement marks the first defense equipment manufacturer to use green steel in production. They will deliver SSAB Zero™ at increasingly higher volumes. In the future, they will also deliver SSAB Fossil-free™ steel produced with HYBRIT® technology.

“This is great news and a strong signal from both companies. Together, we’re committed to meet the demand for CO2 reductions from both producers and customers,” said Per Elfgren, head of SSAB Special Steels.