“In switching from iron ore pellets to carbon-free sponge iron we are taking an important step forward in the value chain, increasing the value of our products and at the same time giving our customers direct access to carbon-free iron. That’s good for the climate and good for our business,” said LKAB president and chief executive Jan Moström. 

The plan calls for significant annual investments over the coming years, about SEK 10 billion to 20 billion (US$1.2 billion to US$2.3 billion) annually over the next 20 years. 

“The plan is based on a commercial assessment of the future market. By offering carbon-free products, LKAB can more than double its annual sales up until 2045, and have the ability to supply the world market with the essential carbon-free iron when the global economy transitions and begins building tomorrow’s railways, wind turbines, electric cars and industrial machinery,” the company said.