Volvo Cars to Build EX60 SUV with SSAB Near Zero-Emission Steel Meta
Volvo Cars today signed a new agreement with Swedish steel pioneer SSAB to secure high-quality, near-zero-emission steel from 2025, making it the first car maker to obtain such material for series production deliveries. The extended partnership positions both firms at the forefront of sustainable steel, and Volvo will both purchase this advanced steel and return its scrap, allowing SSAB to keep resources in a closed loop at their highest value.
"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, chief supply chain and manufacturing officer. "We work towards achieving net-zero greenhouse gas emissions by 2040, and cutting steel-related emissions has the potential to move the needle."
Volvo Cars will utilise recycled steel in the construction of critical components for its forthcoming fully electric EX60 SUV and other SPA3-based models, ensuring a match in strength and durability to primary steel. SSAB’s process recycles almost 100% of scrap. It significantly reduces operational CO₂ emissions when compared with conventional European production, demonstrating that circular steel can deliver uncompromising safety with a fraction of the environmental footprint.
"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 increasing awareness of using recycled materials within our supplier network."
Volvo Cars aims for a fully electric lineup and net-zero greenhouse-gas emissions by 2040. By 2030, it aims for a 65–75% reduction in CO₂ per car compared to the 2018 baseline, achieved through value-chain reductions and the broader use of recycled materials. The SSAB deal underpins this journey, supporting Volvo’s plan to average 30 per cent recycled content across the fleet by 2030 and to ensure every new model launched from that year contains at least 35 per cent recycled or bio-based components.