How Volvo Supports Circular Economy Goals in Britain​​

The automotive industry is under growing pressure to reduce waste, lower emissions and use resources more responsibly. In Britain, where sustainability targets are becoming increasingly important across manufacturing and transport, many carmakers are now moving towards a circular economy model, which is focused on repair, reuse, refurbishment and recycling rather than the traditional ‘take, make and dispose’ approach.

Among the manufacturers embracing this shift is Volvo Cars. Through remanufacturing vehicle parts, increasing the use of recycled materials and reducing production waste, Volvo is working towards a more sustainable future. As Britain continues its push towards greener transport and net zero targets, this post will take a closer look at what a circular economy is, Volvo’s sustainability ambitions, and why circular economy strategies are becoming increasingly important for the future of UK motoring and manufacturing.

What is a Circular Economy?​

​A circular economy is designed to reduce waste and extend the life of materials and products. In the automotive sector, this can include:

• Reusing vehicle components.
• Recycling metals and plastics.
• Refurbishing used parts.
• Designing vehicles that are easier to repair.
• Recovering materials from end-of-life cars and batteries.

This differs from the traditional linear economy, where products are manufactured, used and then discarded. In Britain, circular economy policies are increasingly linked to achieving net zero emissions and reducing pressure on natural resources.

The automotive industry has a major role to play because car production requires significant amounts of steel, aluminium, plastics and rare minerals. Electric vehicles also depend on battery materials such as lithium, making recycling and reuse increasingly important.

Why Circular Economy matters for Britain

Britain’s net zero ambitions depend not only on cleaner vehicles, but also on cleaner manufacturing systems. A circular economy can help reduce:

• Industrial emissions
• Resource depletion
• Manufacturing waste
• Dependence on virgin raw materials

For consumers, circularity may also help reduce long-term vehicle maintenance costs through remanufactured parts and improved repairability.

Companies such as Volvo Cars are increasingly demonstrating that sustainability is not simply about electrification. It is also about how vehicles are built, maintained and eventually recycled.​

Volvo’s Circular Economy ambitions

Volvo’s long-term target is to become a circular business by 2040. As part of this strategy, the company has introduced a number of measurable goals for the decade ahead. This includes new models released from 2030 onwards to contain at least 35 per cent recycled materials.

This approach supports wider British sustainability priorities, particularly as the UK government continues encouraging greener manufacturing and cleaner transport systems.

​Remanufacturing - Giving car parts a second life​

One of Volvo’s biggest contributions to the circular economy is remanufacturing. This process involves restoring used parts to “as-new” condition instead of manufacturing entirely new components from scratch.

Volvo currently remanufactures a wide range of components, including:

• Alternators
• Engines
• Gearboxes
• Brake Calipers 
• Turbochargers
• Clutches

According to Volvo, remanufactured parts use around 85 per cent less raw material and approximately 80 per cent less energy compared with producing brand-new parts. In 2022 alone, the company said it remanufactured more than 33,000 parts, saving over 4,800 tonnes of CO₂ emissions.

This is particularly important in Britain, where reducing industrial emissions remains a major environmental objective. By extending the life of components, manufacturers can reduce pressure on supply chains while cutting unnecessary waste.

Volvo’s remanufacturing programme also reflects a broader shift within the automotive industry towards repair and refurbishment rather than disposal. The company has actually been remanufacturing spare parts since 1945, showing that circular principles are not entirely new to its business model.

Increasing the use of recycled materials

Another major focus area for Volvo is recycled content within vehicles themselves.

Modern car manufacturing relies heavily on energy-intensive materials such as aluminium and steel. Mining and processing these materials creates substantial carbon emissions, which is why manufacturers are increasingly looking to recycled alternatives.

Volvo has already started increasing recycled material usage across newer models. The company states that some of its latest electric vehicles include significant proportions of recycled aluminium, steel and plastics.

This matters in the UK because demand for electric vehicles continues to rise rapidly. As more EVs appear on British roads, attention is shifting beyond tailpipe emissions towards the environmental impact of manufacturing.

Using recycled materials can help lower the overall carbon footprint of a vehicle before it even reaches customers.

Recycling production waste

Manufacturing plants generate huge quantities of waste, particularly metal scraps. Volvo says metal is its largest waste stream, yet the company now recycles all metal waste from car production.

In 2022, Volvo reported that 94 per cent of its global production waste was recycled. The company wants this figure to rise to 99 per cent by 2030.

For Britain, this aligns closely with national efforts to improve industrial sustainability and reduce landfill dependency. The UK has increasingly focused on waste reduction policies across manufacturing industries, and automotive firms are expected to contribute significantly to those targets.

Electric Vehicles and battery circularity

​Electric vehicles are often seen as central to Britain’s green transport future, but EV batteries also create new sustainability challenges.

Battery production requires valuable materials such as lithium, nickel and cobalt. Without proper recycling systems, these materials risk becoming major environmental concerns in the future.

Volvo and its wider automotive group have increasingly focused on battery reuse, repair and recycling as part of their circular strategy.

Industry discussions in the UK are now heavily focused on how old EV batteries can be recovered and reused rather than discarded. Some batteries can even be repurposed for energy storage before eventually being recycled.

As Britain moves towards banning the sale of new petrol and diesel cars, circular battery systems are likely to become even more important over the next decade.

Summary

The automotive sector faces enormous pressure to become more sustainable, particularly as Britain accelerates its environmental targets. While electric vehicles remain an important part of the transition, true sustainability also requires changes to manufacturing, resource use and waste management.

Volvo’s investment in remanufacturing, recycled materials and waste reduction shows how circular economy principles are becoming increasingly important within the car industry. The company’s ambition to become fully circular by 2040 reflects a wider shift taking place across global manufacturing.