Volvo Cars announced an agreement with the Swedish steel company, SSAB, for the supply of recycled steel with almost zero emissions starting in 2025.
In this way, Volvo becomes the first global car manufacturer to secure the supply of this type of low-impact steel for mass production.
Furthermore, the agreement strengthens the long-standing collaboration between the two companies, aiming to accelerate the automotive industry’s transition to more sustainable materials and a more circular value chain. In addition to acquiring the new steel, Volvo Cars will also contribute to this closed loop by marketing discarded steel, extending the lifespan of materials and maximizing their value.
“One of the largest sources of CO2 emissions in our production process is the steel we use in the construction of our cars, responsible for about 25% of the emissions associated with the materials of a new Volvo. Reducing this impact is essential for us to achieve carbon neutrality by 2040”, said Francesca Gamboni, Chief Supply Chain & Manufacturing Officer of Volvo Cars.
The new recycled steel produced by SSAB will be integrated into selected components of Volvo’s future 100% electric SUV, the EX60, as well as in other models based on Volvo’s next-generation SPA3 architecture.
Produced with nearly 100% recycled material, SSAB’s steel represents an almost total reduction in CO₂ emissions associated with the production process, compared to traditional methods used in Europe. The use of this steel is, therefore, a concrete and immediate contribution to Volvo’s climate strategy.
