SSAB said the plant, which will be operational in 2026, will be built in Gällivare. The site was chosen based on a number of factors, including logistics, electricity supply and proximity to iron ore.  

“There are many advantages to locating the new sponge iron plant in Gällivare, which is also in close proximity to LKAB’s mining production and processing,” SSAB said. “Using iron ore pellets that are already warm will save huge amounts of energy. On top of this, 30% of weight will be eliminated from transport since hydrogen gas will be used to remove the oxygen in the iron ore. Gällivare also offers good access to fossil-free electricity from Vattenfall.” 

The plant will be set up to produce 1.3 million metric tons annually, but the goal will be to expand sponge iron production to a full industrial scale of 2.7 million metric tons by 2030.