Volvo Cars have signed a new agreement with Swedish steel firm SSAB for the supply of ‘high-quality, recycled and near zero-emissions steel’ starting this year.
Volvo Cars says it is the first car maker to sign a supply agreement with SSAB for recycled steel for serial production deliveries.
The agreement is an extension of a long-term existing collaboration between the two companies to be at the ‘forefront of the transition to more sustainable steel’.
The recycled steel will be used in selected components of the forthcoming, fully electric EX60 SUV, as well as other cars based on Volvo Cars’ next-generation SPA3 car architecture.
Volvo Cars says the recycled steel meets the same safety-related requirements as primary steel in terms of strength and durability.
One of the biggest sources of CO₂ emissions in our production process is the steel we use to build our cars…
The car manufacturer has a target 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.
Compared with traditionally produced steel in Europe, Volva Cars says SSAB’s recycled steel generates ‘almost 100% less CO₂ emissions’ in its own operations and is made with almost 100% recycled content.
Commenting on the deal, Francesca Gamboni, Volvo Cars’ chief supply chain and manufacturing officer, said: “One of the biggest sources of CO₂ emissions in our production process is the steel we use to build our cars, averaging 25% of all material-related emissions for a new Volvo car.
“By signing this agreement, we have taken an important step in reducing the impact on the environment and increasing the awareness for using recycled materials within our supplier network.”
“We work towards achieving net-zero greenhouse gas emissions by 2040, and cutting steel-related emissions really has the potential to move the needle.”
