What goes around

Recycling and reusing materials in the construction of new vehicles is not new to Audi. The brand’s MaterialLoop program has been involved in testing the viability of re-using numerous different automotive materials – from plastics to glass to metals – for some time. Now Audi is looking to expand on its program, not only in recycling materials from end-of-life vehicle, but also by establishing a means by which not only the brand but its partners and suppliers can access high-quality recycled material – in this case steel – that would others be subject to significant price fluctuations.

After initially focusing on technical feasibility, the brand has now become the first car manufacturer to develop and implement an economically viable recycling concept for recycled materials 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 turned into high-quality post-consumer secondary material and secured for further use in the automotive supply chain.

“Recycling holds tremendous potential. We are constantly working to increase the proportion of recycled materials in our vehicles,” says Audi Board Member for Procurement Renate Vachenauer.

“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.”

Starting this year, Audi will make several thousand preproduction vehicles available for recycling and these vehicles will be processed by its partner TSR Resource into high-quality recycled raw materials for further use within the automotive industry. 

In return, Audi will have access to the secondary material obtained from these vehicles, which will be credited to the ‘digital material account’. Potential material and part suppliers can access this credit balance as part of a tendering process. This gives potential contractual partners of Audi exclusive access to high-quality recycled steel raw materials that can otherwise be subject to significant price fluctuations.

Closing material loops in industry usually requires several companies to work together, creating advantages for all parties involved. While the recycling partner benefits from a predictable incoming stream of end-of-life vehicles and potential buyers of the secondary material, potential suppliers gain access to high-quality recycled materials that are suitable for the automotive industry at stable conditions – and can pass these on to Audi. In turn, Audi is able to stabilise its raw material supply chains at improved economic conditions.

“We are delighted to be working with Audi to set another important milestone for the circular economy in the automotive industry,” says Christian Blackert, Managing Director of TSR Resource.

“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.”

This system makes it possible to increase the proportion of post-consumer secondary material for new vehicles – without compromising on quality or costs. By recycling high-quality secondary materials from vehicles that have reached the end of their life cycle, Audi is demonstrating how resources can be kept in the cycle in a strategic, cost-efficient and sustainable way.