Toyota's European arm has announced plans to build a so-called "circular factory" in Walbrzych, Poland, which will be able to recover components from old vehicles to use in the manufacturing of new cars.

According to a February 19 release from the company, the factory will recycle and repurpose parts like batteries and wheels, as well as materials such as copper, steel, aluminum and plastics. It will have the capacity to process nearly 20,000 "end-of-life" vehicles each year in total, as part of a larger initiative from Toyota to eventually transition to a fully circular and carbon neutral business model in Europe.

"Circularity is both a pathway to and an enabler of carbon neutrality," the company said. "It lowers the demand for carbon intensive raw materials and strengthens supply chains."

Toyota Motor Europe currently has a goal to eliminate all carbon emissions from its vehicle life cycle by 2040, and says it hopes to achieve carbon neutrality at all European plants by 2030. EU regulations also require automakers in the bloc to reduce carbon emissions from all new car and van sales by 100% as soon as 2035. 

The planned facility in Poland would be the second circular factory Toyota has in Europe, after it launched its first one in the United Kingdom in 2025.