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VW Designates Zwickau as Circular Economy Hub With Up to €90 Million Investment

State funding unlocks a 2026 pilot to develop end-of-life vehicle processes for groupwide rollout.

Overview

  • Saxony has granted roughly €10.7–€10.8 million to support the initiative as Volkswagen commits up to €90 million at the Zwickau site.
  • Operations begin this year with about 500 vehicles processed in a pilot, scaling from 2027 toward a 15,000-per-year capacity targeted for 2030.
  • Zwickau will dismantle vehicles, recover materials including battery inputs, and prepare components for reuse using data platforms and AI to track and optimize flows.
  • Volkswagen frames the program as a response to EU recycled-content mandates and as a way to reduce raw-material exposure and vehicle CO2 footprints.
  • The company plans to shift roughly 1,000 roles into circular-economy work, including about 200 in dismantling, as the plant adapts to production reallocation.