MaterialLoop: Audi is establishing a return concept for recyclates from end-of-life vehicles
Audi wants to increase the use of secondary materials in vehicles where it is technically feasible and makes ecological and economic sense. The aim is to increasingly reuse raw materials for new purposes after they have been used. Audi has therefore been testing approaches to feasibility in the MaterialLoop programme since 2023. After initially focussing on technical feasibility, the company has now become the first car manufacturer to develop and implement an economically viable recycling concept for recyclates from end-of-life vehicles together with its partner TSR Resource. In this process, steel scrap from vehicles at the end of their life cycle is processed into high-quality post-consumer secondary material and secured for further use in the automotive supply chain.
In the first stage of expansion, Audi will make several thousand pre-series vehicles available for recycling from this year onwards. These will be shredded by TSR Resource and processed into high-quality recycled raw materials for further use in the automotive industry. In return, Audi receives access to the secondary material obtained from these vehicles, which is credited to a so-called digital material account. Potential material and component suppliers can access this credit balance as part of an award process. This gives potential contractual partners of Audi exclusive access to high-quality recycled steel raw materials, some of which would otherwise be available at high prices.
Audi intends to roll out the process for other material flows and vehicles in the future. All raw materials that Audi currently purchases or will purchase in the future with a binding proportion of recycled materials for its vehicles are eligible. The recycling concept allows the company to procure these raw materials more independently of market-related cost fluctuations. This makes the supply chain more resilient in the long term. At the same time, Audi promotes high-quality recycling and a more sustainable production of vehicles with consistently high quality. Another plus: Audi is already future-proofing itself against external requirements.
Use of post-consumer secondary materials
The responsible use of raw materials is a central focus of Audi’s future-oriented automotive production. The Audi circular economy strategy makes a significant contribution with the reuse of so-called post-consumer secondary materials. This refers to materials that have already been used for another purpose and have been recycled after their first life. Audi has already demonstrated how this works in practice as part of the MaterialLoop programme. This includes, for example, the proportionate use of high-quality recycled post-consumer secondary materials for the windscreen of the Audi Q4 e-tron (GlassLoop) or the outer roof section of the Audi Q6 e-tron (SteelLoop). Audi is now going one step further with its recycling concept for post-consumer secondary materials. Together with its contractual partner TSR Resource, a company specialising in the recycling of end-of-life vehicles, the company is the first car manufacturer to secure reconditioned materials for further use in the Audi supply chain. In this specific case, these are high-quality recycled raw materials, such as steel, from pre-series vehicles and other sources.
Solution for a strategic, cost-efficient and sustainable circular economy
In most cases, several companies have to work together to close material loops in industry. This has advantages for everyone involved: the recycling partner benefits from a predictable incoming flow of end-of-life vehicles and potential buyers of the secondary material. Potential suppliers gain access to high-quality recyclates suitable for the automotive industry at consistent conditions – and can pass these on to Audi. Audi can stabilise its raw material supply chains at improved economic conditions. In this way, the proportion of post-consumer secondary material for new vehicles can be increased – without compromising on quality and costs. By recycling high-quality secondary materials from vehicles at the end of their life cycle, Audi is demonstrating how resources can be kept in the cycle strategically, cost-efficiently and sustainably.
You can read this and other articles on the topic of electric mobility & autonomous driving in the current issue of eMove360° magazine in german language. Download the free PDF or order the print version in the shop.
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