Audi continues to advance the circular economy in the automobile sector and achieves a significant milestone. In vehicles where it is technically possible and makes financial and environmental sense, the business intends to employ more secondary materials. Increasingly, raw materials will be used for new uses once their intended use is over. As a result, Audi has been experimenting with ways to include this in the MaterialLoop program since 2023. Following an initial focus on technological viability, the firm, in collaboration with its partner TSR Resource, has now become the first automobile manufacturer to create and execute a commercially viable recycling strategy for recycling materials from end-of-life cars.
Audi plans to make thousands of preproduction cars accessible for recycling as part of its initial growth phase, which will begin in 2025. TSR Resource will shred these and turn them into premium recycled raw materials for the automobile sector’s future usage. The secondary material acquired from these cars will be credited to a so-called digital material account, giving Audi access to it in exchange. This credit amount is available to prospective material and part suppliers during a tendering procedure. This provides Audi’s prospective contractual partners with unique access to premium recycled steel raw materials, which would otherwise be very volatile in price.
The notion of economic return encourages supply chain recycling and resilience.
Audi intends to use the procedure for more cars and material flows. All raw materials having a mandatory recycling component that Audi now buys or plans to buy in the future are qualified. The corporation can acquire these raw materials more independently of changes in market prices thanks to the recycling idea.
In the long run, this will strengthen the supply chain. Concurrently, Audi is advocating for superior recycling and more environmentally friendly manufacturing of continuously high-quality automobiles. Additionally, Audi has already positioned itself to be resilient to external problems in the future.
Audi Board Member for Procurement Renate Vachenauer: “Recycling holds tremendous potential. We are constantly working to increase the proportion of recycled materials in our vehicles. 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.”
In terms of using post-consumer secondary materials, Audi is in the forefront.
Using raw materials ethically is a key component of Audi’s future-focused vehicle manufacturing process. Reusing so-called post-consumer secondary materials is one important way that Audi’s circular economy plan contributes to this. These are items that have been recycled after serving another use. As part of the MaterialLoop initiative, Audi has already demonstrated how this is done in practice. For instance, the Audi Q4 e-tron’s windshield (GlassLoop) and the Audi Q6 e-tron’s outer roof section (SteelLoop) both use a percentage of premium recycled post-consumer secondary materials.
With its post-consumer secondary material recycling idea, Audi is now taking things a step further. Audi is the first automaker to guarantee that recovered materials are reprocessed for additional use in its supply chain, working with its contractual partner TSR Resource, an expert in the recycling of end-of-life cars. These are premium recycled raw materials, such as steel, from preproduction cars and other sources in this particular instance.
Christian Blackert, Managing Director of TSR Resource: “We are delighted to be working with Audi to set another important milestone for the circular economy in the automotive industry. This project is an impressive example of what is possible thanks to industry partnerships. We are also reducing our dependence on fragile supply chains and making an important contribution to resilience in the face of the challenges posed by global markets.”
A strategic, economical, and sustainable circular economy solution
In industry, closing material loops typically necessitates collaboration between many businesses. Everyone wins from this: the recycling partner gains from a steady flow of cars nearing the end of their useful lives and prospective consumers of the secondary material. Prospective suppliers are able to provide Audi with stable, high-quality recycled materials that are appropriate for the automotive sector. As a result of better economic conditions, Audi can stabilize its supply chains for raw materials.
This enables new cars to use a larger percentage of post-consumer secondary material without sacrificing quality or price. Using premium secondary materials recycled from automobiles nearing the end of their useful lives, Audi is providing an example of how resources might be managed in a sustainable, economical, and strategic manner.
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