SSAB and Volvo cars sign agreement for use of fossil-free steel

Swedish steelmaker SSAB and Volvo Cars have signed an agreement for the supply of SSAB Zero™, a fossil-free steel product, marking a milestone in sustainable manufacturing. Under the agreement, deliveries will begin in 2025, making Volvo Cars the first automotive manufacturer to incorporate decarbonized steel into serial production.

The collaboration supports both companies' broader sustainability targets and is seen as a step toward reducing emissions in one of the automotive industry’s most carbon-intensive materials: steel.

SSAB Zero™ is produced using recycled scrap and powered entirely by fossil-free electricity and biogas, resulting in steel with near-zero fossil carbon emissions. The material is available in multiple grades and dimensions and is designed to meet the same performance and safety standards as conventional steel.

“This agreement represents a key step in decarbonizing our value chain,” said Tony Harris, Head of SSAB Europe. “Working with partners like Volvo Cars enables us to advance the transition to low-emission steel solutions while maintaining the quality standards required in the automotive sector.”

Volvo Cars plans to use SSAB Zero™ in core structural components of its upcoming fully electric EX60 SUV, as well as other future models based on its next-generation SPA3 architecture.

“Steel accounts for roughly a quarter of the material-related carbon emissions in the production of a new Volvo car,” said Francesca Gamboni, Chief Manufacturing & Supply Chain Officer at Volvo Cars. “Reducing emissions from steel is crucial in achieving our climate goals.”

Volvo Cars has set an ambition to become a fully electric carmaker by 2030 and to reach net-zero greenhouse gas emissions across its entire value chain by 2040. The company aims to reduce CO₂ emissions per vehicle by 65–75% from 2018 levels by the end of the decade.

SSAB launched SSAB Zero™ in 2023 as part of its wider decarbonization efforts and continues to develop low-emission steel technologies to support industry-wide climate targets.

Source and Photo: SSAB