Circularity is an intrinsic part of Volvo Trucks’ sustainability strategy. About one third of a new Volvo truck’s total weight is made from recycled material. Approximately half of the wrought iron is acquired from recycled metal and 97% of the cast iron is made from recycled iron. Volvo also uses remanufactured parts – it has green manufacturing plants all over the world. At the end of their lives the trucks are scrapped so that the metals go back into the cycle and the used parts and certain components are sold on.
Volvo is part of the First Movers Coalition, co-operating with companies such as SSAB (fossil-free steel), BASF (polymers) and Hydro (aluminium). These organisations offer a solution which Volvo creates a market for, when it is still new and at the early stages of development. The Coalition has prompted many other companies to see opportunities and move in this direction. It is also supported by the European Union, because they recognise that partnerships and collaborations increase competitiveness within the industry and advance the circular economy.
Fossil-free steel
Volvo has SSAB fossil-free steel in production now, but in limited volumes due to supply constraints. Production is still on a pilot scale, but it will increase in the future.
In October 2021, Volvo Group unveiled a load carrier for use in mining and quarrying, made of 3000 kilos of fossil-free steel – around 70% of the vehicle weight comes from steel and cast iron. The fossil-free steel is created using hydrogen and zero carbon electricity instead of fossil-fuels or fossil raw materials in a joint venture between Swedish steelmaker SSAB, energy company Vattenfall and iron ore miner LKAB.
This is a major milestone in Volvo Truck’s journey towards cutting industrial carbon emissions. If all the steel in a Volvo FH Electric truck could be replaced, the estimate is a 9-ton CO2eq reduction. Volvo delivered the first trucks with fossil-free steel to customers in 2022 and it will ramp up production in the near future.
Volvo also has an agreement with H2 Green Steel, a company which produces low-carbon steel. The long-term supply agreement is for green steel from H2 Green Steel’s new plant in Boden in Northern Sweden. Start of production is planned for end of 2025 and deliveries to Volvo Group will start mid-2026.
Polymers
The Volvo collaboration with BASF is part of the First Movers Coalition. Together they are looking at the different types of polymers and their usage, such as polypropylene, a highly durable polymer produced from propylene which is by far the most common automotive plastic, used in everything from bumpers to cable insulation to carpet fibers. It is the intention to deliver even more innovations into low-carbon materials, such as recycled plastic.
Aluminium
Together with the Norwegian company Hydro, Volvo are looking into the different components on the truck which are made of aluminum. They are taking the first steps to make sure that there is as little carbon as possible in the manufacturing process, as it is a very energy intensive material. This involves:
- Establishing a roadmap towards supplying near zero aluminium ahead of 2030.
- Cooperating to enable greater use of low-carbon aluminium in Volvo’s production towards supplying net zero aluminium in 2040.
- Validating new recycling standards for alloys, to optimize material reuse and exploring closed-loop value chains enabling more scrap to be utilized.
- Exploring how Volvo Group’s innovative transport solutions can be used in Hydro’s mining operations in Brazil to further reduce the carbon intensity of the aluminium value chain.
Batteries
Volvo has been working on giving the batteries used in its vehicles a second life, through improving the battery energy storage system (BESS). A BESS works like a large-scale rechargeable battery, storing electricity when it’s abundant, often from renewable sources like the sun and wind. In addition to supplying energy for your business when demand is high, a BESS acts as a reliable backup during outages or disruptions. This system provides financial benefits by optimizing energy costs and promotes a greener grid by reducing reliance on non-renewable sources. At Volvo, BESS will be available for temporary and stationery set-ups, enabling reliable backup power and a stable grid wherever needed. The system is equipped with first-life batteries, but Volvo aims to transition and fully tap into the benefits of second-life batteries.
An additional solution has now been developed to refurbish batteries and this is a real milestone for Volvo – they are not as good as new, but they can be used again in vehicles. Since batteries are so valuable, it’s a real benefit to be able to use the batteries for as long as possible. Normally, when batteries come to the end of the first usage, they have around 70- 80% of capacity left. Volvo takes the batteries back, evaluates them and assesses what is needed to make them as good as possible.
The refurbishing is an industrial process which takes place in a production facility in Sweden, the Skövde plant, then they are sold and can be used again in electric vehicles, trucks and buses. The refurbished Cube batteries, backed by a two-year warranty, ensure continued performance, and significant reduction of CO2 emissions compared with using a new battery.
There are benefits from an environmental and circularity perspective, but they are also cheaper than new batteries. They have some limitations when compared with new batteries, but obviously the intention is that they should still function in an electric vehicle. In theory, it should be possible to refurbish them again, but every time there needs to be an evaluation to see if it’s worthwhile and if the cost involved balances out the benefit. It’s still early days when it comes to this type of advanced battery technology and the refurbishing process.
EU Regulations
The EU End-of-Life Vehicle Regulation previously just applied to light vehicles, but it is now expected to be expanded to trucks and buses too. It will take several years to come into force – there is a proposal, but it still has to be published and this is a lengthy process, where of course, all different stakeholders will need to give their views. Circularity is important for heavy duty vehicles like trucks, trucks and buses, so it is hoped that this legislation can support the journey. There is also the very comprehensive EU Battery Regulation, covering everything from recycled content to end-of-life management of batteries.
