**Germany**: Audi is set to launch a comprehensive recycling programme in 2025, transforming preproduction vehicles into high-quality recycled materials. The initiative will promote a circular economy in the automotive industry and aims to procure raw materials more sustainably while maintaining cost efficiency.
In a significant development aimed at advancing sustainability in the automotive industry, Audi has announced a comprehensive expansion of its recycling programme set to commence in 2025. This initiative will see several thousand preproduction vehicles made available for recycling, which will be processed by TSR Resource, a specialist in recycling end-of-life vehicles. The shredded components will be transformed into high-quality recycled raw materials intended for further use within the automotive sector.
The core of this strategy involves Audi establishing a digital material account, through which it will gain access to secondary materials garnered from the recycling process. According to this mechanism, potential material and part suppliers will be able to utilise the credit balance generated from these recycled materials during their tendering process. This offers Audi’s partners exclusive access to reliable, high-quality recycled steel, mitigating exposure to market price fluctuations.
Audi’s procurement philosophy focuses on long-term resilience within the supply chain and consists of plans to expand this recycling approach to additional material flows and vehicle types. The initiative aims to allow Audi to procure raw materials with a binding recyclate content more independently from the volatility often seen in market pricing. This effort is positioned to bolster the company’s operational sustainability while supporting comprehensive recycling practices.
Renate Vachenauer, Audi Board Member for Procurement, emphasised the potential that recycling holds for the automotive sector, stating, “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.”
Audi aims to lead by example in the responsible utilisation of raw materials as part of its broader circular economy strategy. This involves the re-use of post-consumer secondary materials, which are materials recycled from their previous applications. An illustration of this commitment is Audi’s ongoing MaterialLoop program, which has successfully integrated high-quality recycled materials into the production of components such as windshields for the Audi Q4 e-tron and roofs for the Audi Q6 e-tron.
Collaborating closely with TSR Resource in this endeavour, Audi becomes the first automotive manufacturer to ensure the reprocessing of recycled materials specifically for its supply chain, an effort underscoring the importance of industry partnerships. Christian Blackert, Managing Director of TSR Resource, remarked on this collaboration, saying, “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.”
The overarching goal of Audi’s recycling initiative is to close material loops in the automotive industry, which typically necessitates collaboration across multiple companies. The premise behind this approach is that through strategic partnerships, all parties involved benefit: recycling partners gain a reliable stream of materials, suppliers access high-quality recyclates under stable conditions, and Audi enhances its raw material supply chains with improved economic feasibility.
In conclusion, Audi’s focus on utilising secondary materials from end-of-life vehicles presents a strategic pathway towards a sustainable and cost-efficient circular economy. By demonstrating the ability to recycle high-quality secondary materials, Audi aims to keep essential resources within the production cycle, reflecting a significant shift in industry practices concerning resource management and sustainability.
Source: Noah Wire Services
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