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Volvo Cars has signed a new agreement with Swedish steel manufacturer SSAB for the supply of high-quality, recycled, and near zero-emission steel starting in 2025. With this deal, Volvo Cars becomes the first automaker to source recycled, near zero-emission steel for serial production.
This agreement is an extension of the companies' existing partnership and aims to drive the automotive industry towards greater use of sustainable steel.
In addition to purchasing recycled steel, Volvo Cars is also advancing its circular economy goals by selling scrap steel, ensuring materials remain in high-value use for longer periods.
Francesca Gamboni, Chief Supply Chain and Manufacturing Officer at Volvo Cars, stated, "Steel is one of the largest sources of CO₂ emissions in our production process, accounting for about 25% of all material-related emissions in a new Volvo car. Our goal is to achieve net-zero greenhouse gas emissions by 2040, and reducing steel-related emissions is a significant step in that journey."
The recycled steel will be used in Volvo’s upcoming fully electric EX60 SUV and other future models based on the SPA3 platform. Importantly, this recycled steel will meet the same high safety and durability standards as traditional steel.
SSAB closed-loop system recycles scrap steel, significantly reducing CO₂ emissions. Compared to conventionally produced steel in Europe, SSAB recycled steel generates almost 100% less CO₂ emissions and contains nearly 100% recycled material.
Volvo Cars aims to reduce CO₂ emissions per vehicle by 65-75% by 2030. The company also plans to use an average of 30% recycled materials across its entire vehicle lineup by 2030. For models launched after 2030, Volvo Cars is targeting at least 35% recycled or bio-based content.
This partnership with SSAB is a major milestone in Volvo path toward circular economy leadership and achieving net-zero emissions.
