A major ELV plastics pilot has shown that automotive plastics can be recovered and recycled, but commercial scale-up remains constrained by weak value-chain coordination and uncertain economics. For recyclers, the opportunity lies in better sorting, traceability and offtake models as Europe moves towards mandatory recycled-plastic content in new vehicles.
A pilot project involving eight major chemical and waste-management companies has shown that plastics from end-of-life vehicles can be recovered and recycled, but the partners warn that commercial scale-up will depend on stronger coordination and a workable economic model.
More than 800,000 tonnes of plastic from end-of-life vehicles (ELVs) are still landfilled or incinerated in Europe each year, despite growing regulatory pressure to keep automotive materials in circulation.
A collaborative pilot involving BASF, Covestro, LG Chem, LyondellBasell, Mitsubishi Chemical Group, SABIC, SUEZ and Syensqo has now demonstrated the technical feasibility of recovering vehicle plastics through a full dismantling, shredding and sorting chain. However, the project also underlines that technology alone will not be enough to create a scalable circular plastics market for the automotive sector.
Pilot validates recovery route
As part of the project, 100 end-of-life vehicles of different ages, makes and conditions were processed through an industrial recycling chain. The partners recovered around eight tonnes of plastic, showing that selected plastic components can be separated and transformed into material suitable for recycling.
The study confirms that ELV plastics can be technically recovered and reprocessed. For recyclers, this is an important signal as Europe moves towards mandatory recycled-content requirements in new vehicles.
However, the findings also make clear that technical feasibility does not automatically translate into commercial viability. The pilot identified structural barriers across the value chain that must be addressed before ELV plastics recycling can move from demonstration projects to routine industrial practice.
Coordination remains the key barrier
The main obstacle is not the recycling technology itself, but the lack of an integrated value chain linking vehicle manufacturers, dismantlers, shredders, waste-management companies and chemical producers.
Without clearer coordination, recyclers face uncertainty over material specifications, volumes, logistics, offtake routes and pricing. At the same time, plastics producers and OEMs need consistent, traceable feedstock if they are to incorporate recycled material into new automotive applications.
The pilot also points to the need for an economic framework that aligns incentives across the chain. At present, the costs of dismantling, sorting and preparing ELV plastics can be difficult to recover, particularly where virgin material remains cheaper or easier to specify.
Charlie Tan, CEO of GIC, said that “closing the loop on plastics in the automotive industry is no longer a question of ambition, but of execution.”
Regulatory pressure is increasing
The European policy context is adding urgency. New vehicle circularity rules are expected to require vehicles to incorporate 25% recycled plastic by 2036, with at least 20% of that recycled content coming from closed-loop sources.
Today, closed-loop recycled plastic content in vehicles is estimated at around 2.5%, highlighting the scale of the investment and operational change required.
For authorised treatment facilities and shredders, this could create new opportunities to supply higher-value plastic fractions. However, those opportunities will depend on clearer standards, better sorting technologies, reliable data and long-term demand from OEMs and material producers.
A wider global challenge
The issue is not limited to Europe. China processed more than 7.9 million end-of-life vehicles in 2024 and has launched a national plan to increase the use of recycled materials in the automotive industry by 2030.
As more regions introduce circularity targets, demand for traceable recycled automotive plastics is likely to grow. This could strengthen the business case for investment in dismantling, sorting, chemical recycling and design-for-recycling solutions, provided the economics can be made to work at scale.
Next steps for scale-up
The pilot partners will use the results as the basis for a new phase focused on economic viability. This will include component-specific recycling models and further trials in areas such as automation, chemical recycling and ecodesign.
For recyclers, the message is practical: ELV plastics can be recovered, but scaling the market will require more than technical proof. It will depend on coordinated collection and sorting systems, clear specifications from manufacturers, investment in post-shred recovery, and a funding model that recognises the real cost of preparing automotive plastics for high-quality reuse.
If those pieces can be aligned, ELV plastics could move from a largely lost waste stream to a more valuable part of the automotive circular economy.
Source www.retema.es/actualidad
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