Volvo Cars signs recycled steel deal

GOTHENBURG: Volvo Cars has inked a new deal with Swedish steel firm SSAB for the supply of recycled and near zero-emissions steel starting from 2025.

Volvo Cars is the first car maker to sign a supply agreement for recycled, near zero-emissions steel for serial production deliveries.

The agreement is an extension of a long-term existing collaboration between the two companies.

Volvo Cars also progresses towards its circular ambitions by also selling scrap steel.

"One of the biggest sources of CO2 emissions in our production process is the steel we use to build our cars, averaging 25% of all material-related emissions for a new Volvo car," says Volvo Cars chief supply chain and manufacturing officer Francesca Gamboni.

"We work towards achieving net-zero greenhouse gas emissions by 2040, and cutting steel-related emissions really has the potential to move the needle."

The recycled steel will be used in selected components of the forthcoming, fully electric EX60 SUV, as well as other cars based on Volvo Cars’ next-generation SPA3 car architecture.

Crucially, this recycled steel meets the same safety-related requirements as for primary steel in terms of 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% less CO2 emissions in own operations and is made with a recycled content of almost 100%.

The agreement with SSAB also supports Volvo Cars’ circularity ambitions, with the aim to use an average of 30% recycled content across the fleet by 2030, and for new car models released from 2030 to contain at least 35% recycled or bio-based content.