Volvo Inks Recycled Steel Agreement, Eyes 30% Recycled Materials by 2030

Image Credit: Volvo Cars

Volvo Cars has taken a bold step in its sustainability journey by becoming the first original equipment manufacturer to secure a supply of recycled, near-zero-emission steel for use in series production. This milestone was reached through a new agreement with Swedish steelmaker SSAB, a longtime partner in Volvo’s broader push toward climate neutrality.

Starting in 2025, Volvo will begin incorporating this low-impact steel into production vehicles, reinforcing its position as a leader in the shift toward greener automotive manufacturing. The steel won’t just be symbolic. It’s going straight into the nuts and bolts—literally—of upcoming models, including components in the fully electric EX60 SUV and other vehicles built on Volvo’s next-generation SPA3 platform.

“One of the biggest sources of CO₂ emissions in our production process is the steel we use to build our cars, averaging 25 per cent of all material-related emissions for a new Volvo car,” says Francesca Gamboni, Volvo Cars' 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.”

And yes, the performance holds up. Volvo stresses that the recycled steel meets all safety, strength, and durability standards on par with conventional primary steel. In other words, no trade-offs—just progress.

The company is also deepening its commitment to circularity by selling off its scrap steel, keeping valuable materials in motion within a closed-loop system. This not only extends the life cycle of the materials but also minimises waste and environmental impact. It’s the kind of closed-loop thinking that turns sustainability from a buzzword into an operating principle.

For SSAB, this isn’t just business, it’s a climate strategy. Their near-zero emissions steel is produced using scrap that has been recycled through an electrified process, drastically reducing carbon emissions compared to traditional European steelmaking methods. Emissions from SSAB’s recycled steel are close to zero at the point of manufacture, and the product itself has nearly 100 per cent recycled content. That’s no small feat in an industry still grappling with the environmental cost of traditional steel.

“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,” says Francesca 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.”

This partnership is more than just a transaction; it's a strategic alliance. It’s part of Volvo’s sweeping plan to reduce carbon emissions across every layer of its operations. The company aims to slash CO₂ emissions per car by 65 to 75 per cent by 2030, compared to a 2018 baseline. By 2040, the goal is net-zero greenhouse gas emissions across the board. Ambitious? Yes. Necessary? Absolutely.

And there’s more. Volvo aims to achieve an average of 30% recycled content across its entire fleet by 2030. For new models released from that year onward, the company plans to ensure at least 35 per cent of materials are recycled or bio-based.