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Start of the Circular Economy: Zwickau Vehicle Plant Launches Business Areas - CleanTechnica

Start of the Circular Economy: Zwickau Vehicle Plant Launches Business Areas - CleanTechnica
Source: cleantechnica
Author: @cleantechnica
Published: 1/21/2026

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The Zwickau vehicle plant has been designated as Volkswagen AG’s central competence center for the circular economy, marking a significant step in the company’s sustainability strategy. Starting with the systematic disassembly and recycling of vehicles, the plant aims to process up to 15,000 vehicles annually by 2030 to recover valuable raw materials and reuse components. Volkswagen plans to invest up to 90 million euros in the site over the coming years, with additional funding of approximately 10.7 million euros provided by the Free State of Saxony. The plant will develop and standardize dismantling processes, leverage AI and data platforms to optimize material flows and recycling, and serve as a training hub for employees in circular economy practices. Volkswagen’s circular economy strategy, summarized by the principle "REDUCE & GROW," focuses on reducing the use of primary raw materials and emissions while fostering new value creation through innovative business models such as recycling, refurbishment, and second-life applications. This approach aims to enhance raw material resilience

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circular-economyvehicle-recyclingraw-materials-recoverysustainable-manufacturingautomotive-industrymaterials-reuseAI-in-recycling