The world’s largest apparel retailer, Inditex (ITX.MC), which owns Zara, has agreed to purchase recycled polyester from American start-up Ambercycle, the firms said on Wednesday.

Inditex is paying more than 70 million euros ($74 million) to ensure the supply of Ambercycle’s recycled polyester manufactured from textile waste, as fast-fashion shops are under pressure to minimize waste and employ recycled textiles.

Because it dries quickly and is robust, polyester, a byproduct of the petroleum industry, is frequently used in sportswear. As part of the offtake agreement, Inditex will pay Ambercycle over three years for a “significant” amount of the recycled polyester that it produces and sells under Cycora. By 2030, the apparel store wants 25% of its fibers from “next-generation” materials.

The first industrial-scale textile recycling facility that Los Angeles-based Ambercycle owns will receive some funding from the Inditex investment. The factory is anticipated to start producing cyclones in 2025, and throughout the next three years, Inditex items will employ the material.

On Wednesday, men’s athletic sub-brand Zara Athleticz debuted a limited line of “technical pieces” with up to 50% cyclone. Zara.com will sell the line, according to Inditex.

Recycled polyester made from plastic bottles has replaced virgin polyester in certain clothing firms’ efforts to lessen their dependency on virgin polyester; nevertheless, this move has drawn criticism because it has increased demand for old plastic bottles, driving up prices.

However, recycling polyester from textiles to textiles is still in its infancy and will take some time to reach the scale that international fashion manufacturers demand.”We aim to stimulate creativity to expand novel approaches, procedures, and resources to accomplish textile-to-textile recycling,” stated Javier Losada, Chief Sustainability Officer of Inditex, in a press release.

The Ambercycle agreement is the most recent in a string of investments Inditex has made in start-ups focused on textile recycling.

It also invested in Circ, another American company specializing in textile-to-textile recycling, and this year struck a three-year agreement for 100 million euros ($104 million) to purchase thirty percent of the recycled fiber produced by Finland’s Infinite Fiber Co.

Inditex and its competitors, including H&M and Mango, have formed an organization in Spain to handle garment trash. This move comes as the sector prepares for new EU regulations that will oblige member states to collect textile waste separately in January 2025.