The Approved Treatment Facility to be developed at Woodrow Way, Irlam will be run by Socially Minded and Responsible Trading (SMaRT), which is part of the First Step Trust (FST).
A main priority is to provide training and work experience in the automotive trade for those who have been out of work for a long time or have never worked. While ELVs will be taken from the general public in the area, it is also hoped the move will give up-to-date skills and confidence to those involved.
FST northern regional director Stuart Owen said: The SMaRT scheme demonstrates that environmental issues and social exclusion can be tackled side by side and we are delighted that after so many years of planning the scheme is finally coming to fruition.
A total of £2 million will be invested in the project over three years from sources such as the Big Lotteries Fund, with companies in the sector such as Sapphire Energy Recovery, European Metal Recycling and Lafarge Cement also throwing their weight behind it.
But by providing a service on ELVs, the project hopes to be self-financing over the next few years, with FST chief executive Ronnie Wilson stating that this is only half of the picture.
He said: It is important to strike the correct balance between commercial success and our social objectives. The majority of people we work with have been unemployed for many years and need time to overcome the debilitating effects of that and other issues in their lives.
Our job is to provide real opportunities and then to support each person to develop to their full potential.
All materials and agents such as batteries, engine and gear oils, brake fluids and antifreeze will be removed with the car body processed for scrap.