Volvo releases net-zero report for new energy vehicle materials

Swedish automaker Volvo Cars and Shanghai Jiao Tong University's China-UK Low Carbon College jointly released China's first comprehensive report on carbon neutrality pathways for new energy vehicle (NEV) materials at the fourth China International Supply Chain Expo (CISCE).

The report highlights the importance of supply chain collaboration in advancing the industry's green transition.

The report, released June 22, offers data-driven insights to help the automotive industry meet China's dual-carbon goals and strengthen green supply chain management.

The year-long study involved nearly 40 companies across the industry and used the Volvo ES90 all-electric sedan as a case study. Researchers assessed carbon emissions and costs across the entire value chain, from raw material extraction to vehicle manufacturing.

The findings show that carbon emissions can be reduced by about 10 metric tons per vehicle without compromising performance or significantly increasing production costs.

The report identified three key pathways to achieving these reductions: scaling up the use of recycled materials, replacing conventional materials with low-carbon alternatives, and increasing the use of clean energy in manufacturing processes.

It also found that about 80% of carbon emissions in the automotive industry originate from upstream supply chains, underscoring that deep decarbonization cannot be achieved by automakers acting alone.

An alliance for sustainable and pioneering development of the automotive industrial chain is launched at the Volvo booth during the fourth China International Supply Chain Expo in Beijing, June 22, 2026. [Photo by Xu Xiaoxuan/China.org.cn]

To address technological and cost-related challenges in the green transition, Volvo launched an alliance focusing on sustainable and pioneering development of the automotive industrial chain during the expo.

This cooperation initiative brings together the China Association of Automobile Manufacturers, Shanghai Jiao Tong University and companies across multiple segments of the automotive supply chain to collaborate in four key areas: low-carbon materials research, circular reuse, emissions reduction and responsible supply chain development.

Its first group of partners covers key automotive raw material sectors, including power batteries, aluminum, interior materials, steel and copper.

Volvo said several low-carbon and circular material technologies promoted by the alliance have already been incorporated into its production models.

The company is participating in the CISCE for the fourth consecutive year, with its exhibition booth centered on the themes of sustainability and health.

Hosted by the China Council for the Promotion of International Trade, the fourth CISCE runs from June 22 to 26. The event spans six sectors — digital technology, advanced manufacturing, green agriculture, healthy life, smart vehicles and clean energy — along with a dedicated supply chain services area.