Starting in 2030, 15,000 end-of-life vehicles are to be recycled annually in Zwickau to recover valuable raw materials and components.

The vehicle plant in Zwickau is set to take on a pioneering role in the field of circular economy, according to Volkswagen. The Free State of Saxony is funding the entire project with up to €10.7 million, according to Volkswagen. In Zwickau, new business areas in the circular economy will be tested for economic viability, standards will be set, and the knowledge gained will be made available to other locations worldwide. According to the information provided, the group plans to invest a total of up to €90 million in conversion work, technical equipment, and AI applications at the site over the next few years. This will include the development and standardization of technical innovations and the use of artificial intelligence. With the help of data platforms and AI, Volkswagen aims to control material flows, recycling processes, and business models and set new standards. Another focus is said to be on the clean separation of materials in order to obtain pure recyclates. According to VW, the move into the circular economy was decided during collective bargaining negotiations in December 2024 for the Zwickau site.
 
Danny Auerswald, spokesman for the management of Volkswagen Saxony, explains: “Volkswagen Saxony is once again taking on a pioneering role. We were the first plant to completely switch to e-mobility. Now we are tapping into the important business area of the circular economy.“
 
Sources:

• Volkswagen press release (21.1.2026)
• Photo: © Volkswagen