SSAB and Volvo Cars Partner to Recycle Automotive Steel Scrap for Fossil-Free Production

Illustration of the SSAB Oxelösund site with the new EAF starting in 2026.

(IN BRIEF) SSAB will purchase high-quality automotive steel scrap from Volvo Cars’ Olofström facility, with deliveries beginning in 2026 and reaching full volume in 2027. The scrap will be processed in SSAB’s new electric arc furnace at the Oxelösund mill, advancing the company’s transition to near-zero-carbon steel. This collaboration enhances circularity in the automotive supply chain and secures essential raw materials for sustainable steel production. SSAB expects the project to reduce its emissions by an amount equivalent to 3% of Sweden’s annual CO₂ emissions.

(PRESS RELEASE) STOCKHOLM, 13-Jun-2025 — /EuropaWire/ — SSAB has entered into an agreement to source premium automotive steel scrap from Volvo Cars’ Olofström plant in Sweden, channeling it to SSAB’s Oxelösund mill for use in its decarbonized steelmaking process. Deliveries of this high-grade scrap will commence in 2026, ramp up over the year, and reach full capacity in 2027.

An electric arc furnace (EAF) at Oxelösund—scheduled to come online in 2026—will recycle the incoming material into new steel, reinforcing SSAB’s shift to virtually carbon-free production. This partnership not only ensures a steady supply of crucial raw inputs but also strengthens circularity within the automotive value chain.

“This agreement marks a pivotal step toward steelmaking with virtually no fossil CO₂ emissions,” said Asma Manesh, Commodity Manager Scrap at SSAB. “Upgrading our Oxelösund site will boost our competitiveness and help us eliminate emissions equal to 3% of Sweden’s total CO₂ output—where high-quality scrap plays a vital role.”

For further information, please contact:
Tobias Wagner, SSAB Press officer, tel. +46767660604, tobias.wagner @ ssab.com

SOURCE: SSAB