Volvo has signed a deal with SSAB, a Swedish steel firm, agreeing to purchase recycled steel.

Production of the recycled steel emits almost 100% less CO2 than producing traditional steel typically does, while still meeting Volvo’s safety, durability and strength requirements.

Francesca Gamboni, chief supply chain and manufacturing officer at Volvo, said: “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.

“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 first vehicle to use recycled steel will be the EX60 electric SUV, which is set to launch next year.

Volvo will also sell scrap steel, helping to create a ‘closed loop’ steel ecosystem, where less is wasted, and less new material needs to be produced.

Volvo aims to use an average of 30% recycled materials across all models by 2030, with all new models released from then on containing at least 35% bio-based or recycled materials.

Gamboni said: “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.

“By signing this agreement, we have taken an important step in reducing the impact on the environment and increase the awareness for using recycled materials within our supplier network.”