Volvo sets bold target for 35% recycled materials in new cars by 2030

In an ambitious push towards sustainability, Volvo Cars, based in Gothenburg, Sweden, strives to become a leader in the circular economy by targeting 35% recycled materials in new vehicles by 2030. Chief Sustainability Officer Vanessa Butani, leading the initiative, emphasizes the company’s commitment to aggressive reuse of metals and batteries, as well as transitioning to climate-neutral manufacturing plants. In conjunction with electrifying its lineup, Volvo is aiming to achieve carbon neutrality in its factories while also reducing water usage by 50%. Since being acquired by Geely Holdings in 2010, Volvo has focused on enhancing the content of recycled materials within its vehicles. The automaker is working with Swedish steelmaker SSAB to integrate recycled steel into its production processes. However, achieving higher percentages of recycled content is increasingly complex due to the rise in materials like plastics, advanced electronics, and lithium-ion batteries used in modern vehicles, which were less prevalent in older models. Currently, the new ES90 premium electric vehicle achieves 29% recycled aluminum, 18% recycled steel, and 16% recycled polymers and bio-based materials. The global electric vehicle market is undergoing rapid change, with significant challenges posed by varying government policies, particularly in the U.S. While China leads the sales of electric vehicles and plug-in hybrids, U.S. policies under the previous Trump administration have sought to slow the transition towards electrification and relaxed environmental regulations, causing a contrasting landscape. Volvo's response has been to focus on plug-in hybrids within the U.S. market as a transitional solution, ensuring they continue to innovate while staying aligned with consumer preferences. While progress has been made, Butani acknowledges that there is still a considerable journey ahead to achieve their recycled content target, particularly given the complexities associated with sourcing recycled battery materials which is currently limited. With initiatives such as providing battery passports that detail the origins and production methods of battery materials, Volvo aims to foster transparency and better inform consumers about the sustainability of the materials used in their vehicles.