Sea ice dynamics exhibit granular behavior as individual floes and fracture networks become particularly evident at length scales O(10–100) km and smaller. However, climate models do not resolve floes and represent sea ice as a continuum, while existing floe‐scale sea ice models tend to oversimplify floes using discrete elements of predefined simple shapes. The idealized nature of climate and discrete element sea ice models presents a challenge of comparing the model output with floe‐scale sea ice observations. Here we present SubZero, a conceptually new sea ice model geared to explicitly simulate the life cycles of individual floes by using complex discrete elements with time‐evolving shapes. This unique model uses parameterizations of floe‐scale processes, such as collisions, fractures, ridging, and welding, to simulate a wide range of evolving floe shapes and sizes. We demonstrate the novel capabilities of the SubZero model in idealized experiments, including uniaxial compression, the summer‐time sea ice flow through the Nares Strait, and winter‐time sea ice growth. The model naturally reproduces the statistical behavior of the observed sea ice, such as the power‐law appearance of the floe size distribution and the long‐tailed ice thickness distribution. The SubZero model could provide a valuable alternative to existing discrete element and continuous sea ice models for simulations of floe interactions.