According to a 2025 Jalopnik article "That's not accurate - this is only for used tires. They are recycled, at least.
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Pirelli actually collects all the tires from the race weekend, regardless of whether they're used or not."
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"When Pirelli's professionals are done with them, those F1 tires are then shipped to England, where they're shredded and converted to small rubber pellets. The pellets are ultimately burned under extreme heat as tire-derived fuel to power concrete factories."