CiSMA Circular Steel

Steel is an essential material for us – it sets the foundation for safety, strength and durability in our cars. And we’re far from the only company to value steel for these qualities.

It’s one of the most widely used materials in the world, but at the same time, steel production is energy‑intensive and has traditionally been a significant contributor to global industrial carbon emissions. So reducing that environmental footprint, while making sure the steel still meets high standards for quality and performance, is a critical challenge.

That challenge was the starting point for CiSMA, which stands for Circular Steel for Mass Market Applications. It’s a European research and innovation project that aims to enable high‑quality steel production from recycled scrap, for use in mass‑market applications across multiple industries.

The project brings together steel producers, manufacturers, research institutes and technology specialists from across Europe, and we’re one of the industrial partners involved. This collaborative approach helps make sure that every step of recycled steelmaking, from scrap sorting and steel development to real-world use, is handled with the right expertise.

Rethinking how steel is made

Producing high‑performance steel entirely from scrap is not straightforward. Scrap steel can contain residual elements from previous uses, which may affect how the material behaves during forming and joining. This has traditionally limited the use of fully recycled steel in mass‑market products such as cars.

CiSMA addresses this by focusing on electric arc furnace technology. This enables steelmaking using entirely recycled scrap and can reduce CO₂ emissions by 75 per cent compared with traditional blast‑furnace processes. The project also develops improved methods for scrap sorting, material analysis and testing, to make sure that recycled steel can meet demanding industrial requirements.

Most importantly, the work goes beyond material development: CiSMA aims to show that circular steel solutions can work at industrial scale, within real production systems.

Why it matters for us

One of the biggest sources of CO₂ emissions in our production process is the steel used to build our cars, averaging 25 per cent of all material-related emissions for a new Volvo car. We’re working towards achieving net-zero greenhouse gas emissions by 2040, and cutting steel-related emissions can really help us in this aim.

Volvo Cars is one of the project’s two industrial pilot sites, and we’re testing how 100 per cent recycled steel performs in various components used in our cars. This pilot testing helps us ensure that the circular steel meets our quality and durability standards, understand how it fits with our production processes, and map the environmental benefits compared with today’s steel components.

Our climate action plan is comprehensive and one of the most ambitious in the auto industry. As part of this plan, we aim to use an average of 30 per cent recycled content across our fleet by 2030, and for new car models released from 2030 to contain at least 35 per cent recycled or bio-based content. The CiSMA project is a great opportunity for us to reduce our overall climate impact, while supporting a more circular approach to steel sourcing.

If you want to know more about our work with recycled material, look no further than our new, EX60 electric SUV, which sets new standards in our use of recycled and low-carbon material. It contains the highest amount of recycled content of any electric Volvo we’ve ever built – including 49 per cent recycled aluminium and a special steel produced with virtually zero carbon emissions in the steelmaking process.

CiSMA (Circular Steel for Mass Market Applications) is funded by the European Union under the Union Horizon Europe programme (project nr. 101177798).