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Volvo Says It Made World's First Vehicle With Fossil-Free Steel

Volvo unveils the prototype, a load carrier for use in mining and quarrying, at a green steel event in Gothenburg, Sweden.

Volvo  (VLVLY) shares rose Wednesday, after the Swedish truck maker said it has made a prototype of what it claims is the world's first vehicle constructed with fossil-free steel.

“More vehicles will follow in 2022 in what will be a series of concept vehicles and components using fossil-free steel from SSAB,” Volvo said. SSAB is a Swedish steel company.

The prototype, a load carrier for use in mining and quarrying, was unveiled at a green steel event in Gothenburg, Sweden.

Volvo on Wednesday closed at $22.75, up 2.4%.

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In August, Volvo introduced its newest electric truck. It rolled out its first set of VNR Electric Class 8 regional hauling trucks on the East Coast, with the first five joining Manhattan Beer Distributors’ fleet of more than 400 delivery trucks serving 25,000 customers.

Besides having a range of more than 150 miles per charge and emitting zero emissions, the trucks are silent: no noisy idling while loading and unloading or, as is more often the case in the Big Apple, idling in traffic.

"Emissions, congestion and noise are all major challenges that face heavy-duty trucking, especially in urban centers like New York City," Volvo Trucks North America President Peter Voorhoeve told TheStreet's Corey Goldman.

"This is just the beginning of Volvo Trucks' path toward wide-scale commercial deployment of battery-electric trucks," he said.

Earlier this month, Volvo said it’s recalling 460,769 older model cars worldwide due to faulty airbags that can explode and send shrapnel into the cabin. More than half of the vehicles were sold in the U.S.