Volvo Cars has signed a landmark agreement with Swedish steel manufacturer SSAB to source high-quality, recycled and near zero-emissions steel starting in 2025—becoming the first automotive company to secure such a deal for serial production.
The recycled steel will feature in the upcoming fully electric EX60 SUV and other next-generation models built on the SPA3 architecture, meeting the same safety and durability standards as conventional primary steel.
This agreement marks an extension of Volvo’s long-standing collaboration with SSAB, aimed at leading the industry’s transition to sustainable steel. Volvo Cars also plans to enhance its circularity strategy by selling its own scrap steel, thereby maximising material use and value through a closed-loop system.
Francesca Gamboni, Chief Supply Chain and Manufacturing Officer at Volvo Cars, said, “Steel accounts for around 25% of all material-related emissions in a new Volvo. Cutting steel-related emissions is essential to our net-zero ambition.”
SSAB’s recycled steel is produced with nearly 100% recycled content and generates almost no carbon emissions within its own operations, significantly outperforming traditional European steelmaking processes. By integrating this steel into its future EVs, Volvo reinforces its broader sustainability roadmap, which includes reducing CO₂ emissions per vehicle by 65–75% by 2030 and achieving net-zero greenhouse gas emissions by 2040.
Volvo also aims for its new models from 2030 onwards to feature at least 35% recycled or bio-based content, with a fleet-wide average of 30% recycled material.
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