Recycled steel deal signed by Volvo
Volvo has signed a new agreement with Swedish Steel firm SSAB for the supply of “high-quality,” near zero-emissions, recycled steel starting from 2025. This makes Volvo the first car maker to sign a supply agreement for recycled steel that is “near zero-emissions” for the use in production cars.
The agreement builds on an existing collaboration between the two firms with a goal of transitioning to more sustainable steel. In addition to the recycled steel, Volvo says it is progressing towards its goal of selling scrap steel, helping it to keep its materials in a closed loop system.
“One of the biggest sources of CO₂ emissions in our production process is the steel we use to build our cars, averaging 25 percent of all material-related emissions for a new Volvo car,” says Francesca Gamboni, our 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.”
The steel will make up selected components in its upcoming all-electric EX60 SUV, as well as other cars among its next generation of models. Crucially, Volvo says, it meets the same safety requirements in terms of strength and durability.
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