SSAB and Volvo Cars partner to advance decarbonized steel production

SSAB has signed an agreement to purchase high-quality automotive steel scrap from Volvo Cars’ Olofström production plant in Sweden to be recycled and used at SSAB’s mill in Oxelösund to produce decarbonized steel. SSAB will start receiving high-quality automotive steel scrap with a ramp up during 2026 and the full volume from 2027 onward.

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

This collaboration reinforces circularity in the automotive value chain and supports reliable sourcing of an important raw material for SSAB’s steel production at its Oxelösund mill.

“This agreement marks a significant milestone on our journey toward steelmaking with virtually no fossil CO₂ emissions. The conversion of our Oxelösund site will not only enhance our production competitiveness but also enable us to cut emissions equivalent to 3% of Sweden’s total CO₂ output – and high-quality steel scrap is an important factor in this equation,” said Asma Manesh, Commodity Manager Scrap at SSAB.

The steel scrap will be recycled using SSAB’s new electric arc furnace in Oxelösund, starting in 2026 - a key component of the company’s transformation to fossil-free steel production.

For further information, please contact:
Tobias Wagner, SSAB Press officer, tel. +46 767 660 604, tobias.wagner @ ssab.com