Wedoany.com Report-Oct. 21, LKAB, headquartered in Luleå, Sweden, and Hitachi Energy Ltd., based in Zurich, Switzerland, have signed a Memorandum of Understanding (MoU) to establish a long-term collaboration supporting LKAB’s electrification and transition to a fossil-free future. The first phase of the partnership involves Hitachi Energy supplying technology and equipment for electrical power management for LKAB’s planned demonstration project for sponge iron production in Gällivare.

Jan Moström, President and CEO of LKAB, said: “This is another important step on the path to enabling our planned transition and expansion. Electrification is absolutely central to our continued competitiveness going forward in a society that achieves our climate goals. To get there, we need to utilize the expertise that is gathered within the industry. The collaboration with Hitachi Energy gives us the conditions to build cost-effective solutions that enable our future competitiveness.”

The MoU outlines a joint focus on strengthening efficiency, sustainability, and innovation in electrical power transmission and energy management. Initial efforts will concentrate on LKAB’s first demonstration plant for sponge iron production and associated hydrogen plants. The collaboration aims to enable continued electrification and implement a hydrogen-based direct reduction process at industrial scale, supporting a shift toward fossil-free steelmaking.

Tobias Hansson, Country Managing Director of Hitachi Energy in Sweden, said: “We are pleased to collaborate with LKAB in this important initiative. No single company or country can manage the energy transition on its own – cooperation and partnership are required to make it a reality. Our joint expertise and close cooperation will drive developments in energy efficiency and sustainability forward.”

Hitachi Energy, with over a century of experience in electrification, provides advanced grid connection solutions, including transformers, high-voltage products, and systems tailored to the growing needs of fossil-free mining and steel production. Combined with LKAB’s industry leadership, the collaboration aims to drive innovation, reduce carbon emissions, and create long-term impact across the value chain.

Moström added: “Electricity and its efficient transmission are a crucial factor in the transition that LKAB and the industry are facing. There are many different parts that need to be put in place, and continued expansion of the electricity infrastructure is also necessary, so that we can get the electricity where it is needed when it is needed.”

LKAB’s demonstration plant in Gällivare, employing Hybrit technology, is expected to produce 1.35 million tons of sponge iron per year. The facility will be gradually expanded with additional plants to reach a total production capacity of 5.4 million tons annually. This project represents a key step in LKAB’s broader strategy to decarbonize steel production, improve energy efficiency, and implement sustainable industrial processes across Sweden.

Through this collaboration, LKAB and Hitachi Energy aim to set a benchmark for electrification and hydrogen-based steel production, supporting long-term sustainability goals and contributing to the global energy transition.