The Hague, March 6th, 2023 - Circularise, the Dutch digital product passports provider has joined the MaterialLoop project initiated by Audi to move forward its circular economy strategy and get valuable insights on how a circular economy can be put into practice.
Together with other 14 partners from the research, recycling, and supplier sectors, headed by Audi, Circularise participated in the pilot project aimed to investigate the possibility of the reuse of post-consumer materials, which are taken from customer vehicles at the end of their lifecycle for the production of new cars. Circularise has brought its expertise in end-to-end supply chain traceability with the use of blockchain technology in the role of the digital product passport expert.
“It is our goal to recover as many materials as possible at a high level of quality and reuse them in production. This will save valuable primary materials and lower the products’ ecological footprint,” says Audi CEO Markus Duesmann. “Simultaneously, direct access to secondary materials can contribute to increased security of supply. Raw materials would no longer have to be extracted.”
Back in October 2022, 100 vehicles, including among others former development cars, were dismantled as part of the MaterialLoop project. After disassembly, the car bodies were shredded and sorted into material groups comprising steel, aluminium, plastic, and glass. With the aim of testing the reuse of such materials in the production of new cars, Audi defined and piloted the further recycling process together with project partners from the recycling industry, the Audi supply chain, and academia.
Being a recognised expert in the digital product passport software space, Circularise provided all partners with the digital tool to trace the movement of all the materials from dismantling to recycling and consequently reuse. The goal was to avoid downcycling and achieve the most sustainable end-of-life vehicle recycling practices.
“Sustainability in the automotive world requires a greater understanding of all the facets of material selection and production, design, engineering, supply chain, component manufacturing, finishing, and assembly,” says Mesbah Sabur, Circularise Founder. “With digital product passports we can support traceability and accounting of the materials, processes, and impacts at each step of the value chain. This makes it easier for automotive suppliers and OEMs to accurately measure the LCA and carbon footprint of vehicles as well as make more informed decisions regarding the circular vehicle production”.
Digital product passports will play a key role in bringing the circular economy into reality, especially for electric vehicles. With the EU’s battery passports regulations coming into power in 2026, and the Inflation Reduction Act 2022 in the US, Circularise aims to support manufacturers, suppliers, regulators, and consumers with valuable information to improve compliance, quality assurance, and accelerate the transition to a circular economy.
The Audi Group is one of the most successful manufacturers of automobiles and motorcycles in the premium and luxury segments. The brands Audi, Ducati, Lamborghini and Bentley produce at 21 locations in 13 countries. Audi and its partners are present in more than 100 markets worldwide. In 2022, the Audi group delivered 1.61 million Audi vehicles, 15,174 Bentley luxury automobiles, 9,233 Lamborghini sportscars, and 61,562 Ducati motorcycles to customers. In the 2021 fiscal year, AUDI Group achieved a total revenue of €53.1 billion and an operating profit before special items of €5.5 billion. More than 89,000 people all over the world work for the Audi Group, around 58,000 of them in Germany. With its attractive brands, new models, innovative mobility offerings and groundbreaking services, the group is systematically pursuing its path toward becoming a provider of sustainable, individual, premium mobility.
For access to updates about Audi, please visit: https://www.audi-mediacenter.com/
Circularise is a digital product passports and mass balance bookkeeping software provider founded in The Netherlands in 2016. Circularise’s software system helps suppliers in chemicals, plastics, battery materials, metals, and other industries to trace materials and share their environmental footprint without risking their sensitive data. By extension, it helps brands to get visibility into their own Scope 3 emissions and other metrics, which is aligned with the regulatory push around Digital Product Passports, the SEC’s proposed climate risk disclosure rules, and the Corporate Sustainability Reporting Directive.
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