In a statement, Salzgitter said it and LKAB will work together to evaluate potential development of iron-ore-based raw materials for Salzgitter’s Low-CO₂ Steelmaking program, SALCOS, which is targeting carbon-emissions-free steel production by 2033.

"With our already unique climate performance and strategy to provide the steel industry with the raw material to enable decarbonization, first as pellets and successively as carbon-free DRI/HBI, we want to make this transformation in the industry possible together with our customers and suppliers," said LKAB chief executive Jan Moström.

"For such a change to materialize you need not only the incentives and level playing field on the market, but also an industrial value chain approach," he added. 

Meanwhile, Salzgitter said it and Rio Tinto will study optimizing Rio Tinto iron ore pellets, lump and fines from Australia and Canada for use in the SALCOS project. 

"Salzgitter has one of the world’s most advanced green steelmaking projects. Rio Tinto is excited at the opportunity of supplying our product and combining our technical expertise with that of Salzgitter to help advance the SALCOS project," said Rio Tinto chief commercial officer Alf Barrios.