Audi is now the first automotive manufacturer to economically recycle high-quality steel from end-of-life vehicles into new car production, advancing its circular economy strategy, the automaker said in a news release.
In collaboration with recycling partner TSR Resource, Audi has created a closed-loop system that transforms steel scrap from decommissioned vehicles into post-consumer secondary materials for reuse in its supply chain. This breakthrough follows testing under the company’s MaterialLoop program, which began in 2023.
Starting in 2025, Audi will contribute thousands of preproduction vehicles to the recycling process, which TSR Resource will shred and process into premium-grade recycled steel. The resulting materials will be added to a “digital material account,” allowing Audi to distribute credits to potential suppliers through a tendering process. This gives suppliers access to high-quality recyclates, shielding them from volatile raw material prices.
“Recycling holds tremendous potential,” said Renate Vachenauer, Audi Board Member for Procurement. “With the digital material account, Audi is pioneering a system in the automotive industry through which it can procure valuable recycled raw material resources more independently of the market. Audi demonstrates that sustainability and economics go hand in hand.”
The approach not only enhances supply chain resilience but also enables the company to reduce environmental impact by reusing materials rather than sourcing new ones. Audi plans to expand the program to include additional materials and vehicle components over time.
This system aligns with earlier circular initiatives like GlassLoop and SteelLoop, which repurposed recycled materials for components in the Audi Q4 e-tron and Q6 e-tron. But the latest development marks the first instance of a fully scalable and economically feasible post-consumer recycling model in the industry.
“We are delighted to be working with Audi to set another important milestone for the circular economy in the automotive industry,” said Christian Blackert, managing director of TSR Resource. “This project is an impressive example of what is possible thanks to industry partnerships.”
The partnership ensures a stable flow of end-of-life vehicles for recyclers and consistent access to recycled raw materials for suppliers, benefiting all participants in the value chain while driving a sustainable automotive future.
