Volvo Cars Partners With SSAB To Incorporate Recycled Steel Into Vehicle Production By 2025

Volvo Cars, in a pioneering move, has entered into a new partnership with Swedish steel company SSAB. This collaboration marks the first of its kind, where a car manufacturer has committed to incorporating high-quality, recycled, and nearly zero-emission steel into its production line, starting in 2025. This initiative is a part of Volvo Cars' broader strategy to minimize its environmental footprint and transition towards more sustainable materials in its manufacturing processes.

The agreement is built upon an already established relationship between Volvo Cars and SSAB, aimed at leading the automotive industry towards a more sustainable future by utilizing steel that is almost completely emissions-free. This endeavor not only demonstrates Volvo Cars' dedication to environmental stewardship but also sets a new standard for the automotive sector in reducing carbon emissions.

Volvo Cars' commitment to sustainability extends beyond this agreement. The company is actively working towards its circular economy goals by engaging in the sale of scrap steel. This practice not only contributes to reducing waste, but also supports the creation of a closed-loop system. This system ensures that materials are maintained at their highest value for the longest possible time, further solidifying Volvo Cars' position as a leader in the drive towards more sustainable automotive production.

Lee Parket, Brand Director at Volvo UAE, Al-Futtaim, emphasized the company's commitment to its customers and the planet, stating, "At Volvo UAE, we know our customers care deeply about the impact their choices have on the world. This agreement reinforces our commitment to sustainability and transparency, not just in how our cars perform, but in how they are made. By introducing near zero-emission recycled steel into our future vehicles, we're showing that safety, innovation, and environmental responsibility can go hand in hand."

Francesca Gamboni, Volvo Cars' chief supply chain and manufacturing officer, highlighted the significant role of steel in the company's carbon footprint, noting that it accounts for around 25 percent of all material-related emissions for a new Volvo car. She added, "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 procured through this agreement will be utilized in selected components of Volvo Cars' upcoming vehicles, based on the next-generation SPA3 car architecture. This recycled steel is not only environmentally friendly but also meets the stringent safety, strength, and durability requirements set for primary steel, ensuring that Volvo Cars' commitment to safety remains uncompromised.

SSAB's innovative closed loop system plays a crucial role in significantly reducing CO₂ emissions by recycling scrap steel. This method not only keeps materials in use for longer periods but also reduces CO₂ emissions by almost 100 percent in SSAB's operations compared to traditionally produced steel in Europe. The recycled steel boasts nearly 100% recycled content, further enhancing its sustainability credentials.

Volvo Cars' agreement with SSAB is a testament to its dedication to achieving a fully electric future and its goal of attaining net-zero greenhouse gas emissions by 2040. By aiming to reduce CO₂ emissions per car by 65-75% by 2030, compared to a 2018 baseline, Volvo Cars is taking significant strides in reducing its environmental impact across the value chain.

The partnership with SSAB not only exemplifies Volvo Cars' commitment to environmental sustainability but also aligns with its circularity ambitions. By 2030, Volvo Cars aims for an average of 30 percent recycled content across its fleet, with new car models released from that year onwards containing at least 35 percent recycled or bio-based content.