The agreement is an extension of a long-term existing collaboration between the two companies, with the purpose of being at the forefront of the transition to more sustainable steel.
In addition to buying recycled and near zero-emission steel, Volvo Cars has progressed towards its circular ambitions by also selling scrap steel, helping it to keep materials in a closed loop system.
“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,” said Francesca Gamboni, chief supply chain and manufacturing officer. “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 SPA3 car architecture. Volvo has said that 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 is said to generate almost 100% less CO₂ emissions in own operations and is made with a recycled content of almost 100%.
‘An important material’
“Steel is an important material to ensure the safety, strength and durability of our products and traditionally it’s a significant contributor to our carbon emissions,” said Gamboni. “By signing this agreement, we have taken an important step in reducing the impact on the environment and increase the awareness for using recycled materials within our supplier network.”
Volvo Cars has stated that it aims to use an average of 30% recycled content across its fleet by 2030, and for new car models released from 2030 to contain at least 35% recycled or bio-based content.
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