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Volvo Cars Partners With SSAB For Sustainable Recycled Steel Supply Agreement
Volvo Cars has entered into a new agreement with SSAB, a Swedish steel company, to procure high-quality, recycled steel with nearly zero emissions starting in 2025. This makes Volvo the first automaker to secure such a supply deal for mass production. The collaboration builds on their existing partnership aimed at advancing sustainable steel practices.Volvo Cars is committed to reducing its carbon footprint, aiming for net-zero greenhouse gas emissions by 2040. Francesca Gamboni, the chief supply chain and manufacturing officer, stated that steel accounts for about 25% of material-related emissions in new Volvo cars. She emphasised that reducing these emissions could significantly impact their environmental goals.The recycled steel will be used in specific parts of the upcoming fully electric EX60 SUV and other vehicles based on Volvo's next-generation SPA3 architecture. Importantly, this recycled steel meets all safety standards required for primary steel in terms of strength and durability.SSAB employs a closed-loop system to recycle scrap steel, which drastically cuts CO₂ emissions while extending the use of materials and natural resources. Compared to traditional European steel production, SSAB’s recycled steel results in almost no CO₂ emissions during its own operations and is made from nearly 100% recycled content."Steel is crucial for ensuring our products' safety, strength, and durability," Gamboni noted. "Traditionally, it has been a major source of carbon emissions." By signing this agreement, Volvo Cars aims to lessen environmental impacts and promote the use of recycled materials within its supplier network.
Volvo's Circular Economy Goals
In addition to purchasing recycled steel, Volvo Cars advances its circular economy ambitions by selling scrap steel. This helps maintain materials at their highest value for as long as possible within a closed-loop system. By 2030, Volvo plans to reduce CO₂ emissions per car by 65-75% compared to 2018 levels through continuous emission reductions across its value chain.The agreement with SSAB exemplifies this commitment. It also aligns with Volvo's goal to incorporate an average of 30% recycled content across its fleet by 2030. New car models released from that year are expected to contain at least 35% recycled or bio-based content.Volvo's Global Presence
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