Volkswagen to launch circular economy centre at its Zwickau plant in Germany

Volkswagen has announced plans to transform its Zwickau plant in Germany into the company’s main centre of excellence for the circular economy, with operations expected to begin in 2030. The project will focus on dismantling, refurbishing, and recycling up to 15,000 vehicles per year from across Volkswagen Group brands, including both electric and internal combustion-engine models. Volkswagen plans to invest up to €90 million in the initiative, with additional support of up to €10.8 million from the German state of Saxony. Under the plan, used vehicles will be returned from customers and dealerships to the Zwickau site, where they will be inspected and either refurbished for reuse or dismantled for parts and materials. Reusable components such as doors, headlights, and engines will be prepared for resale, while valuable raw materials—including metals from electric vehicle batteries—will be recovered for recycling. Volkswagen says the project will help reduce reliance on global raw material markets, lower vehicle carbon footprints, and enable new business models. While no specific recycling targets were announced, the company noted that more than 80 percent of vehicle materials can typically be recycled, rising to over 90 percent for batteries.