Toyota’s ‘Circular Factory’ Idea Could Be a Great Alternative to Junk Yards

The first-of-its-kind program would make end-of-life vehicles live forever as part of your new car. The post Toyota’s ‘Circular Factory’ Idea Could Be a Great Alternative to Junk Yards appeared first on The Drive.

Mar 24, 2025 - 01:17
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Toyota’s ‘Circular Factory’ Idea Could Be a Great Alternative to Junk Yards

With one junked car at a time, Toyota looks to reduce, reuse, and recycle its way into another profit stream while keeping trash out of well, actual streams. We’ve seen plenty of press releases describing sustainability and other green initiatives, but we have not seen many automakers talking about taking responsibility for its cars decades after they’re built. This could be an interesting idea.

The Toyota Circular Factory is a new initiative that will curate what they call end-of-life vehicles (ELVs—junkers bound for the bone yard) and piece them out for repurposing, remanufacturing, and recycling. ELVs are vehicles tagged as hazardous waste, usually due to age or as the result of a crash.

According to the European Union, more than six million vehicles are left to rot, causing not only environmental issues but also an economic loss in the millions for the materials that can be repurposed. As such, the EU ELV Directive went into effect in 2000, with a regulation update proposed in 2023. The directive sets minimum requirements, which can be adapted for each member country.

The TCF program was established by Toyota Motor Europe (TME) and its name refers to all of TME’s recycling activities within the EU market. Globally, it’s the first operation of its kind within Toyota. The first location will be at Toyota Motor Manufacturing UK (TMUK)’s Burnaston plant, whose principal build is the Toyota Corolla. 

Toyota Motor Europe

Through the TCF, each ELV will go through an extensive validation process before being sorted. Materials and parts will be tagged for three key areas: reusability for resale, refurbishing, and recycling. Reusable parts will be sold through Toyota retailers and parts distributors. Raw materials like copper, aluminum, steel, and plastic would be recycled and used in the production of new parts. Everything will be assessed, including commodities like batteries and wheels, on where their second life will begin.

“We initially anticipate recycling around 10,000 vehicles a year in our UK facility, which will give new life to 120,000 parts, recover 300 tons of high purity plastic and 8,200 tons of steel—amongst other materials,” said Leon van der Merwe, Vice President of Circular Economy at Toyota Motor Europe.

He added, “As a next step for the Toyota Circular Factory concept, we plan to roll out similar operations across Europe. And we’re not stopping at our own facilities – we are eager to collaborate with other organisations who share our passion of circularity and commitment to carbon neutrality.”

How does TMUK obtain these ELVs anyway? Per the UK’s ELV regulations, vehicles are registered but automakers also need to provide a take-back program free of charge. And there is an “unlimited fine” for non-compliance with ELVs. 

This sounds more purposeful and just a better overall plan than, say, Cash for Clunkers. That federal program was done purely as an economic stimulus that resulted in thousands of vehicles being destroyed. Whereas in Toyota’s eyes, end of life really means a second chance.

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