Toyota's 'Circular Factory' in Europe is an example of sustainability in practice
In a scenario of finite resources and growing demand for sustainable solutions, Toyota is seeking to turn environmental challenges into strategic opportunities. The Japanese automaker has expanded its plant in Burnaston, in the United Kingdom, with a “circular factory” (Toyota Circular Factory) that began operating in 2025, according to recent announcements. The unit aims to reuse up to 10,000 vehicles per year, recovering around 120,000 parts to tackle the global problem of “unusable cars” — vehicles so worn out that they can neither be used nor resold.
These cars, when discarded indiscriminately, generate significant waste. In Brazil, for example, less than 2% of end-of-life vehicles are recycled, according to estimates from the automotive sector, due to scarce formal infrastructure. In São Paulo, between 2017 and 2021, more than 6,500 cars were removed from the streets by the city government, and the low recycling rate persists in 2025, highlighting the need for practical solutions. Toyota integrates this initiative into its goal of zero emissions by 2035, in line with the Environmental Challenge 2050.
At the Burnaston plant, old vehicles go through sorting: viable parts are remanufactured, while materials such as steel, copper, aluminum and plastic become recycled raw material. Toyota expects to recover 8,200 tons of steel and 300 tons of high-purity plastic in 2025 alone — ambitious targets that depend on the full activation of the unit, which began this year. The World Steel Association points out that recycling steel can cut CO2 emissions in body production by up to 58%, supporting the environmental potential of the initiative.
Unlike an exclusive focus on electric vehicles (EVs), celebrated for having zero emissions in use, Toyota takes a broader view. According to the International Energy Agency, about 50% of the environmental impact of EVs occurs in manufacturing. To address this, the company is betting on recycling and remanufacturing: in its European operations, 90% of industrial waste is reused, according to preliminary reports from Toyota Europe, and reusing parts can cut costs by between 40% and 60%, according to internal projections released in 2024. However, the high initial investments and the logistical complexity of this transition remain scarcely detailed.
While EVs reduce emissions in use, the disposal of old vehicles remains a critical challenge. In the European Union, more than six million cars are reportedly abandoned, according to industry studies, and in the US, car graveyards — such as the one in Arizona, with more than 10,000 vehicles — illustrate the scale of the problem. In Burnaston, Toyota responds with efficiency: one vehicle is assembled every 89 seconds, incorporating recycled parts. This reflects the Toyota Production System (TPS), which combines sustainability and productivity by eliminating waste.
Remanufacturing, a Toyota practice for decades, faces obstacles such as the variability of parts — different colors, conditions and origins — and the management of thousands of SKUs. Even so, TPS, with its emphasis on flow and standardization, mitigates these barriers. A McKinsey survey (2023) revealed that 33% of industries suffered severe supply chain disruptions between 2020 and 2023, underscoring the relevance of resilient strategies such as this one.
Toyota is criticized for its limited offering of pure EVs, lagging behind rivals such as Tesla and Volkswagen, which dominate this market. The company defends an alternative approach, prioritizing hybrids and recycling as viable short-term solutions. In 2023, 93% of Toyota North America's waste was reused, according to its sustainability report. The “circular factory” reinforces this trajectory, which began with the “Toyota Earth Charter” (1992), but its economic viability and scalability are still being tested. The unit requires advanced infrastructure and skilled labor, costs that may limit its replication.
The automotive sector accounts for about 15% of global emissions, according to the UN, and Toyota's circular approach can reduce this impact while strengthening the production chain. However, it is not a pioneer: BMW and Volvo are also investing in recycling, suggesting that Burnaston is part of a broader trend. The 2025 results — such as the 8,200 tons of steel — are still under evaluation, subject to delays or operational variables.
Toyota's lesson is pragmatic: sustainability requires vision and execution, but it faces real limits. The “circular factory” is a concrete step forward, but not a definitive solution. For companies, it offers a model to study: that efficiency and responsibility can coexist with profitability, as long as the challenges are faced with transparency. Burnaston is testing whether this approach can scale globally, but its success will depend on economic and political adaptations that go far beyond Toyota.
