Volvo Cars has signed a new supply agreement with Swedish steelmaker SSAB for high-quality, recycled, near-zero-emission steel. This is the first time a car manufacturer has committed to using this type of steel in large-scale production.
Beginning this year, the steel will be used in Volvo’s upcoming fully electric EX60 SUV and other future models based on the next-generation SPA3 platform. While cutting carbon emissions is the main goal, the steel will still meet all safety and performance standards expected of traditional materials.
“One of the biggest sources of CO₂ emissions in our production process is the steel we use to build our cars, averaging 25 percent of all material-related emissions for a new Volvo car. We work towards achieving net-zero greenhouse gas emissions by 2040, and cutting steel-related emissions really has the potential to move the needle.”
Francesca Gamboni, chief supply chain and manufacturing officer Volvo Cars
The partnership between Volvo and SSAB has been in place for a while, but this new agreement is part of a larger strategy to reduce emissions across the value chain. SSAB’s “closed-loop system” cuts CO₂ output significantly. In fact, CO₂ output is almost 100% less than traditional European steel.
In addition to using the near-zero-emission steel, Volvo is also selling its own steel scrap, keeping materials in use for longer.
By 2030, Volvo aims to reduce CO₂ emissions per car by up to 75% compared to 2018, and to have an average of 30% recycled content across its vehicle lineup. New models from that year will also feature at least 35% recycled or bio-based materials.
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