Audi's Circular Economy Strategy Sets Industry Benchmark

Audi launches a digital recycling system for end-of-life vehicles, boosting supply chain resilience with high-quality secondary materials. Learn more.

Audi is taking a major step in sustainable manufacturing by launching a cost-efficient system for returning recycled materials into the supply chain. In partnership with TSR Resource, the automaker has implemented a model unique to the industry: steel from end-of-life vehicles is transformed into high-quality raw material ready for reuse in car production.

Starting in 2025, Audi will send thousands of preproduction vehicles for dismantling and recycling. The resulting secondary raw materials will be credited to a "digital material account" — a system through which suppliers can bid for access to stable, high-quality recyclates, previously subject to volatile pricing.

This approach not only reduces dependency on fluctuating markets but also strengthens supply chain resilience. As Audi’s Board Member for Procurement Renate Vachenauer emphasizes, the digital account allows the company to source valuable recycled resources with economic and environmental independence.

MaterialLoop, a program launched in 2023, plays a key role in this strategy. It demonstrates how post-consumer materials can be reincorporated into new production. Recycled steel is already used in Audi A4, while reused glass features in the Q4 e-tron.

While BMW, Mercedes-Benz, and Tesla are also advancing circular economy initiatives, Audi is the first to implement a digital tracking system for recycled materials and integrate them into vehicle manufacturing at scale.

This program aligns with broader European efforts to improve material efficiency. The EU’s proposed regulation on vehicle circularity sets stricter recycling targets, including specific thresholds for recycled content in automotive production.

On the technological side, TSR Resource ensures processing and traceability standards compatible with industry regulations. As Managing Director Christian Blackert notes, the project is a landmark in industrial collaboration.

Altogether, Audi isn’t just keeping pace with trends — it is shaping the future of the automotive industry with a focus on environmental responsibility, strategic foresight, and technological leadership.

Source: audi-mediacenter.com