SHERIDAN, WYOMING – April 7, 2025 - Audi sets a new industry standard with digital material account and sustainable raw material sourcing
Audi is making sustainability drive innovation in automotive production
Audi has reached a new milestone in circular economy innovation by securing a strategic and cost-efficient supply of recycled raw materials. In partnership with recycling specialist TSR Resource, Audi has introduced a groundbreaking return concept for recyclates from end-of-life vehicles—one that’s not only sustainable but also economically viable.
This move makes Audi the first car manufacturer to implement such a model, signaling a major shift in how the industry can reduce reliance on virgin materials and price-volatile supply chains.
How it works: A digital material account changing the game
Launched through Audi’s MaterialLoop program, the new concept transforms steel scrap from end-of-life vehicles into high-quality post-consumer secondary material. These recycled materials are then credited to a unique digital material account.
This account offers a strategic advantage. Potential material and part suppliers bidding for Audi contracts can access this account’s credit balance, gaining exclusive access to premium recycled steel—an asset in a market where raw material costs often fluctuate dramatically.
“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,” said Renate Vachenauer, Audi Board Member for Procurement.
Starting 2025: Preproduction vehicles become tomorrow’s raw material
Audi will begin by recycling several thousand preproduction vehicles annually. These will be shredded and processed by TSR Resource to produce high-quality recycled materials ready for reintegration into the automotive supply chain.
This process ensures that raw materials—specifically those with a binding recyclate content—can be reused, promoting a more resilient and sustainable supply chain.
Boosting resilience in the automotive supply chain
By leveraging its own end-of-life vehicles, Audi is reducing its dependence on global supply chain uncertainties and price swings. This not only stabilizes sourcing but also contributes to a more sustainable production process.
“Recycling holds tremendous potential,” Vachenauer emphasized. “Audi demonstrates that sustainability and economics go hand in hand.”
Setting a new benchmark in responsible material reuse
Audi's new recycling approach builds on earlier initiatives like GlassLoop and SteelLoop, where the company reused post-consumer secondary materials from old vehicle parts. The windshield of the Audi Q4 e-tron and the roof of the Q6 e-tron already feature such recycled content, demonstrating Audi’s long-term vision in action.
Christian Blackert, Managing Director of TSR Resource, praised the partnership:
“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.”
Circular collaboration: How the system benefits everyone
Audi’s model encourages synergy across the industry. Recycling partners benefit from a reliable supply of end-of-life vehicles, while suppliers get stable access to high-quality recyclates. Audi, in turn, secures its raw materials at improved conditions—without compromising quality.
By keeping resources in use longer and maximizing their value, Audi is showing that a strategic, cost-efficient circular economy is not only possible but also practical and profitable.
Sustainable luxury, engineered for the future
As Audi scales this model across more vehicle types and material streams, the company continues to reinforce its commitment to a future-proof, environmentally responsible automotive industry.
Ready to drive the change?
Audi’s pioneering approach sets the stage for a new era in sustainable mobility—where circular thinking isn’t just an ideal but a built-in part of how cars are made.
Learn more about how Audi is shaping the future of sustainable mobility at audi.com.