In a major step toward decarbonizing vehicle production, Volvo Cars has signed a landmark agreement with Swedish steelmaker SSAB to procure high-quality, recycled and near zero-emissions steel starting in 2025. With this move, Volvo becomes the first car manufacturer to sign a supply agreement with SSAB for such steel to be used in serial production.
The deal expands on a long-standing collaboration between the two sustainability-focused Swedish companies and underscores Volvo Cars’ commitment to achieving net-zero greenhouse gas emissions by 2040.
One of the biggest sources of CO₂ emissions in our production process is the steel we use to build our cars,” said Francesca Gamboni, Chief Supply Chain and Manufacturing Officer, Volvo Cars. “By cutting steel-related emissions, we are making meaningful progress towards our climate goals.
Steel That’s Clean and Circular
The near zero-emission steel from SSAB is produced using a closed-loop recycling system that transforms scrap steel into high-grade material. This process generates nearly 100% fewer CO₂ emissions in SSAB’s operations compared to traditionally produced European steel and uses almost 100% recycled content.
Volvo Cars will incorporate this recycled steel into selected components of its upcoming fully electric EX60 SUV, as well as other vehicles based on the next-generation SPA3 architecture. Importantly, the recycled steel meets the same rigorous safety, strength, and durability standards as primary steel.
A Closed-Loop Approach
In line with its circular economy ambitions, Volvo Cars will also supply its own scrap steel back to SSAB, creating a closed-loop supply system that keeps materials in use for longer and maximizes value.
Steel is crucial for the safety and durability of our products, but also a major source of emissions,” Gamboni added. “This partnership reflects our commitment to using sustainable materials and encouraging our entire supply chain to do the same.
Long-Term Vision: Electrification and Emission Reduction
This agreement supports Volvo’s broader environmental goals:
- 100% fully electric vehicle line-up by 2030
- 65–75% CO₂ reduction per car by 2030, compared to 2018 levels
- 30% average recycled content across all models by 2030
- 35% recycled or bio-based content in all new models released from 2030 onwards
The collaboration with SSAB marks another significant milestone in Volvo Cars’ path to a climate-neutral future, combining innovation, safety, and sustainability at the core of its manufacturing process.
