Swedish iron ore producer LKAB and global electrification provider Hitachi Energy have signed a long-term memorandum of understanding to advance and enable LKAB’s transition toward fossil-free iron and steel production. The partnership focuses on integrating energy-efficient solutions and expanding renewable power use across LKAB’s industrial operations.
As part of the first phase, Hitachi Energy will deliver advanced power management systems and electrical equipment for LKAB’s planned sponge iron demonstration plant in Gällivare, which will use a hydrogen-based direct reduction technology. The facility is designed to produce 1.35 million metric tons per year initially, expanding to 5.4 million metric tons in later stages.
LKAB president and CEO Jan Moström said the collaboration is a crucial step toward electrifying production and meeting climate goals, noting that industry expertise is key to developing cost-effective, sustainable solutions. Tobias Hansson, managing director of Hitachi Energy Sweden, added that the energy transition “requires cooperation across sectors to make it a reality”.
According to LKAB, the agreement aims to strengthen efficiency, sustainability and innovation in power transmission and grid stability. Combining Hitachi Energy’s global experience in electrification with LKAB’s leadership in mining and green steelmaking, the partnership lays a strong foundation for a fossil-free industrial value chain, LKAB said.