Volvo Cars has signed a new agreement with Swedish steel firm SSAB to supply high-quality, recycled, and near-zero-emission steel for serial production deliveries starting in 2025. Volvo Cars is the first car maker to sign such a supply agreement.
The agreement extends a long-term collaboration between the two companies, positioning them to be at the forefront of the transition to more sustainable steel.
In addition to buying recycled and near-zero-emission steel, Volvo Cars progresses towards its circular ambitions by selling scrap steel. This helps Volvo Cars keep materials at the highest value for the longest period in a closed-loop system.
The recycled steel will be used in selected components of the forthcoming, fully electric EX60 SUV and other cars based on Volvo Cars’ next-generation SPA3 car architecture. Crucially, this recycled steel meets the exact safety-related requirements as primary steel in strength and durability.
SSAB’s closed-loop system recycles scrap steel, significantly reducing CO₂ emissions and keeping materials and natural resources in use for longer. Compared with traditionally produced steel in Europe, SSAB’s recycled steel generates almost 100 per cent less CO₂ emissions in its operations and is made with a nearly 100 per cent recycled content.
Volvo Cars is committed to a fully electric future and aims to achieve net-zero greenhouse gas emissions by 2040. By 2030, the aim is to reduce CO₂ emissions per car by 65-75 per cent compared to a 2018 baseline by continuously reducing CO₂ emissions across the value chain.
The agreement with SSAB is an example of this. It also supports Volvo Cars’ circularity ambitions, which aim to use an average of 30 per cent recycled content across the fleet by 2030 and for new car models released after 2030 to contain at least 35 per cent recycled or bio-based content.
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