A company called Unifi crushes, melts, and stretches recycled water bottles into a sewable fabric called "Repreve yarn." Ford's been using it in their vehicles since 2012, and they say they'll divert 9 million plastic bottles from landfills now that Repreve is the 2015 F-150's standard seat material.
You might have already worn Repreve yarn in some North Face fleeces, Vitamin A bikinis, Volcom shorts, and a few other products already utilizing the material. Repreve itself is basically made of waste polyester and plastic, mashed together, superheated, and shot through a series of enormous molecule-rearranging machines.
It takes "a couple weeks" to turn recyclables into Repreve, but you can see the whole process go down in about five minutes right here: