Polestar has taken another step in strengthening the sustainability credentials of its electric vehicles, announcing that batteries used in the Polestar 2 and Polestar 3 now contain at least 50 per cent recycled cobalt. The move reflects a broader shift across the automotive industry towards circular supply chains and improved visibility of materials used in vehicle manufacturing.
For Fleet Managers and Sustainability Managers developing long-term decarbonisation strategies, the announcement highlights a growing focus on the full lifecycle impact of vehicles—not just tailpipe emissions.
Circularity Moves from Concept to Operational Reality
Battery materials have been a central concern for organisations tracking Scope 3 emissions and supply chain sustainability. By increasing the proportion of recycled cobalt in its batteries, Polestar is working to reduce reliance on virgin raw materials while keeping valuable resources in use for longer.
The company’s approach to circularity also extends beyond manufacturing. A key operational focus is extending battery life and retaining value throughout the vehicle lifecycle, which has practical implications for fleet ownership and replacement planning.
Polestar has partnered with battery refurbishment centres operated by Volvo Cars, enabling high-voltage batteries to be repaired and reused when replacement is required. Vehicles receive refurbished batteries with an equivalent state-of-health, supporting continuity of service while reducing environmental impact.
For Finance Managers, this type of circular model may influence residual value assumptions and whole-of-life cost calculations, particularly as battery refurbishment becomes more common across the industry.
Sustainability Transparency Becoming a Procurement Requirement
Fleet procurement processes are evolving rapidly as organisations adopt formal ESG and emissions reporting frameworks. Manufacturers are responding by improving transparency around materials and lifecycle emissions.
Polestar has been publishing Life Cycle Assessments for its vehicles since 2020 and has reduced relative CO₂ emissions per vehicle by 25 per cent during that period while expanding its model range.
This level of reporting is increasingly relevant for organisations required to demonstrate measurable progress against sustainability targets. It also supports more informed decision-making when comparing vehicle options across different powertrains and brands.
Fredrika Klarén, Head of Sustainability at Polestar, said the transition to circular battery materials is part of a broader system change in how vehicles are designed and managed.
“Electrification, powered by renewable energy and enabled by circular battery materials, points to a new kind of system: one where resources stay in use and abundance replaces depletion.”
What It Means for Fleet Planning
The practical implications of battery circularity are becoming clearer as the technology matures and supply chains stabilise.
For organisations building fleet decarbonisation plans, three operational considerations are emerging:
1. Vehicle sustainability now includes material sourcing
Fleet sustainability strategies are expanding beyond fuel use and emissions to include supply chain transparency and recycled content.
2. Battery lifecycle management is becoming a fleet capability
Refurbishment and reuse models will influence replacement cycles, maintenance planning, and asset utilisation strategies.
3. Procurement frameworks need to evolve
Policies should consider lifecycle emissions, recycled materials, and manufacturer sustainability reporting alongside traditional cost and performance metrics.
These changes reinforce a broader message for fleet teams: electrification is not a single purchasing decision. It is an ongoing asset management process that requires improved data, stronger policies, and collaboration across finance, sustainability, and operations.
As fleet management maturity increases, organisations will be better positioned to evaluate emerging developments like battery circularity within a structured strategy—rather than responding to them as isolated technology updates.
