SSAB and Volvo Cars reached an agreement that SSAB will buy high-quality automotive steel scrap from Volvo Cars' Olofstrom production plant in Sweden and make those be recycled and used at SSAB’s mill in Oxelösund for decarbonized steel production. 

SSAB will also begin to collect high-quality automotive steel scrap, hike production during 2026, and reach full volume from 2027.

Both companies see that the collaboration will help circularity in the automotive value chain and support the sourcing of raw materials for SSAB’s steel production at the Oxelösund plant.

SSAB said the deal will help to cut CO2 emissions by 3% of Sweden’s total CO2 output. The deal marked the company's steelmaking with virtually no fossil CO2 emissions, and high-quality steel scrap will be an important one in this process.

The steel scrap will be recycled by SSAB’s new electric arc furnace in Oxelösund starting in 2026.