Volvo will recycle retired batteries from its vehicles, leaving them to suppliers to dismantle and extract the metal materials, and CATL will use the recycled materials to produce new batteries that will be used in the production of new Volvo vehicles.

(Image credit: Volvo)

Volvo and CATL will reduce EV full life cycle carbon emissions by dismantling, recycling and reusing used batteries, according to the statement.

Volvo will recycle retired batteries from EVs it sells, as well as batteries scrapped during factory production.

These batteries will be dismantled by Volvo-certified suppliers to extract more than 90 percent of the nickel, cobalt, lithium and other metal materials.

CATL will use these recycled materials to produce new batteries that will be used in the production of new Volvo vehicles, according to the statement.

The agreement is an important milestone in building a battery recycling, closed-loop business model in China, opening a new chapter in closed-loop management of the battery cycle, said Tan Libin, co-president of CATL's marketing system.

Volvo unveiled its sustainability strategy in 2019, aiming to reach an average of 30 percent recycled material use across its entire model range by 2030, and to include at least 35 percent recycled materials in new models produced from 2030 onwards.

Volvo is committed to achieving net-zero greenhouse gas emissions by 2040, which will require a concerted effort from supplier partners across the chain, said Li Hai, vice president of supply chain for the automaker's Asia-Pacific region.

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