Pathbreaking Pact & Pioneering Partnership

In a significant move toward sustainable manufacturing, Swedish steelmaker SSAB & automotive titan Volvo Cars have forged a landmark agreement to deploy SSAB Zero™ steel in Volvo’s production line starting this year. The collaboration positions Volvo as the first automaker globally to integrate decarbonized steel into serial production, reinforcing its ambition to reach net-zero greenhouse gas emissions by 2040.

Fossil-Free Formulations & Forging Futures

SSAB Zero™ is heralded as the world’s first commercially available steel of its kind. It is produced exclusively from recycled scrap using fossil-free electricity and biogas, a radical departure from traditional coal-intensive methods. This innovative process eliminates virtually all fossil CO₂ emissions during production, offering steel in multiple grades without compromising structural integrity.

Ecological Epiphany & Emissions Elimination

Steel production typically contributes significantly to carbon emissions, particularly in automotive manufacturing. Francesca Gamboni, Chief Manufacturing & Supply Chain Officer at Volvo Cars, emphasized that steel accounts for approximately 25% of all material-related emissions in a new Volvo vehicle. “Cutting steel-related emissions really has the potential to move the needle,” she stated, underscoring the importance of this alliance in Volvo’s broader climate strategy.

Strategic Sustainability & Serial Scalability

The SSAB Zero™ steel will be integrated into key components of Volvo’s upcoming EX60 electric SUV, as well as other models based on the next-generation SPA3 vehicle architecture. Importantly, the steel meets all Volvo’s stringent safety & performance standards, proving that sustainability need not come at the cost of quality or strength. This paves the way for broader adoption across the automotive sector.

Green Goals & Granular Gains

Volvo Cars is steadfast in its commitment to electrification & emissions reduction. The company aims to lower CO₂ emissions per vehicle by 65–75% by 2030, compared to a 2018 baseline. This transition includes upstream improvements in sourcing, production, and materials. Incorporating SSAB Zero™ steel is a critical step in curtailing Scope 3 emissions, those arising from materials and supply chains.

Recycled Resources & Renewable Realignments

Unlike conventional primary steel production, which relies on iron ore reduction in blast furnaces, SSAB Zero™ utilizes scrap metal as its raw material base. Combined with fossil-free power, this methodology exemplifies circular economy principles. SSAB’s strategy not only curtails CO₂ output but also minimizes the depletion of finite natural resources, heralding a more regenerative industrial model.

Industrial Innovation & Intersectoral Impact

Tony Harris, Head of SSAB Europe, highlighted the transformative potential of the partnership: “This collaboration marks a significant step forward in our shared commitment to reducing carbon emissions.” By partnering across sectors, steel & automotive, SSAB and Volvo exemplify how joint ventures can catalyze systemic change within heavy industry and manufacturing ecosystems.

Decarbonized Dreams & Developmental Drive

SSAB, which launched SSAB Zero™ in 2023, is part of a broader initiative to eliminate fossil CO₂ emissions from its operations entirely. Volvo’s decision to adopt the product in real-world production signals a readiness among legacy industries to embrace radical reform. As the world pivots toward climate-conscious commerce, such alliances could redefine the norms of material sourcing & sustainable innovation.

Key Takeaways

• Volvo Cars will use SSAB Zero™, a fossil-free steel, in its EX60 SUV & future models.

• SSAB Zero™ is made from recycled scrap using biogas & renewable electricity, with near-zero CO₂ emissions.

• Volvo aims to cut CO₂ emissions per car by up to 75% by 2030, targeting net-zero emissions by 2040.