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Volvo Cars signs carbon-reduced steel supply agreement with SSAB

Swedish automotive manufacturer Volvo Cars has signed an agreement with SSAB for the supply of carbon-reduced steel.

Volvo Cars signs carbon-reduced steel supply agreement with SSAB

SSAB and Volvo Cars have signed an agreement for the supply of SSAB Zero™ steel, effective from this year. With the agreement, Volvo Cars becomes the first automotive manufacturer to commit to using carbon-reduced steel in its series production vehicles.

Under the agreement, Volvo Cars will use SSAB Zero™ steel in next-generation vehicle platforms and in key components of several of its vehicles, most notably the all-electric EX60 SUV. SSAB Zero™ is produced by processing recycled scrap metals using non-fossil electricity and biogas. This process results in steel with virtually zero fossil carbon emissions.

Tony Harris, President of SSAB Europe, stated: "This collaboration represents an important step in our shared commitment to reduce carbon emissions. We are offering carbon-reduced steel without compromising on the exceptional quality required for Volvo Cars' high standards,"

Volvo Cars notes that steel production accounts for around 25% of all material-related emissions in a new Volvo vehicle. The company aims to achieve net zero greenhouse gas emissions by 2040, while reducing carbon emissions per vehicle by 65-75% by 2030 compared to 2018 levels.

SSAB aims to completely eliminate fossil carbon emissions from its own production processes. Developed with this in mind, SSAB Zero™ was launched in 2023 and is commercially available in various grades and sizes. The product meets Volvo Cars' high safety and performance standards.

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