Editor’s Note: Opportunities in automotive recycling will be featured in sessions at the 2026 Plastics Recycling Conference, Feb. 23-25 in San Diego, California. Register now!
German vehicle manufacturer Volkswagen plans to invest up to €90 million ($108 million) in its Zwickau plant over the next few years, with the state of Saxony providing up to €10.7 million ($13 million).
The money will go toward plant conversion work, technical equipment and AI applications at the site, VW said in a statement. Already 500 test vehicles are being systematically disassembled to recover raw materials and reuse components, and modular dismantling will allow capacity to grow to 15,000 vehicles a year by 2030.
First VW will define, test and validate vehicle dismantling processes to set standards for its other sites. “This will give Volkswagen access to parts and components that, after proper testing and processing, can be returned to the cycle, e.g. for used vehicles. Another focus is on separating materials cleanly in order to obtain pure recyclates,” the company said.
New business models for VW including recycling, refurbishment and second-life applications provide potential for additional market share and revenue, the company said. Looking ahead to the medium term, scaling its circular economy ambitions will require additional locations and partnerships in Europe.
Andreas Walingen, head of group circular economy, said the investment addresses challenges facing the auto industry including raw material supply, decarbonization, economic efficiency and employment. In particular the company seeks to reuse raw materials in constructing new vehicles, making VW less dependent on the global materials trade, among other aims, he said.
Data platforms and AI will help track and control material flows, recycling processes and business models, as well as set new standards, VW said.
T-Roc SUV contains highest share of recycled plastics in VW fleet
Volkswagen recently launched the second generation of its T-Roc SUV in Europe, with about 20% of all plastics within made partly or entirely from recycled plastics – the highest proportion of recycled content among VW models. Up to 140 exterior and interior components contain recycled materials, such as the headliner and wheel housing liners, and weigh up to 88 pounds, or about 16% of the T-Roc’s total plastic.
The largest components of the T-Roc containing recycled materials include:
- Underbody paneling
- Luggage compartment trim
- Front door trim
- Floor coverings
In addition, up to 85% of the vehicle’s textiles contain recycled materials, with seats in some trim lines made from 100% recycled PET flake from beverage bottles, and the microfleece used on headliners and door trim in several models contains 71% RPET from bottles and polyester T-shirts.
The company also takes back end-of-life Volkswagens, and says 95% of the vehicle can be recycled and recovered.
