Swedish iron ore producer LKAB and global electrification provider Hitachi Energy have signed a long-term memorandum of understanding aimed at promoting and enabling LKAB's transition to fossil fuel-free iron and steel production. The partnership aims to integrate energy efficient solutions and expand the use of renewable energy in LKAB's industrial operations.
As part of the first phase, Hitachi Energy will supply advanced power management systems and electrical equipment for LKAB's planned sponge iron demonstration plant in Gällivare, which will use direct hydrogen-based reduction. The plant is initially designed to produce 1.35 million metric tons per year, with capacity to be expanded to 5.4 million metric tons in later stages.
LKAB President and CEO Jan Moström said the collaboration is an important step towards electrifying manufacturing and achieving climate goals, noting that industry expertise is key to developing cost-effective and sustainable solutions. Tobias Hansson, managing director of Hitachi Energy Sweden, added that the energy transition “requires cooperation between sectors to make it a reality.”
LKAB said the agreement aims to improve efficiency, sustainability and innovation in power transmission and grid stability. Combining Hitachi Energy's global expertise in electrification with LKAB's leadership in mining and clean steel, the partnership lays a strong foundation for a fossil-free industrial value chain, LKAB
said.
