A coalition of eight major companies aims to overhaul how Europe handles plastic from retired cars, targeting a circular supply chain. Every year, Europe loses over 800,000 tonnes of automotive plastic to landfill or incineration, with recycling rates stuck below 20%, according to the Global Impact Coalition (GIC). The GIC’s Automotive Plastics Circularity (APC) project seeks to reverse this by improving sorting and recycling practices.
Shifting the Recycling Mindset
The APC project shifts focus to sorting plastics during vehicle dismantling, rather than relying on post-shredding separation. Grouping plastics by polymer type and keeping them intact through the recycling chain improves quality and increases the share of plastics that can be reused in manufacturing. GIC data suggests this approach could boost usable recycled plastic yields by as much as 40%.
Balancing Policy, Economics and Technology
While industry commitment is crucial, policy support is equally necessary. The EU Green Deal’s proposed ELV Regulation sets a target for 25% recycled content in vehicle plastics by 2030, including a share from ELV sources. But to meet these goals, coordinated policies and shared investments are needed to standardize dismantling practices and support advanced recycling techniques.
New technologies are already playing a role. AI is helping dismantlers identify plastic types more accurately, while chemical recycling, breaking down plastics to molecular building blocks, offers a route to regenerate even degraded plastics into high-quality feedstock. Recent pilot projects highlight that centralized recycling and sorting hubs can drive down costs and improve material recovery rates.
However, recycled plastics remain more expensive than virgin materials, creating economic hurdles. Extended producer responsibility (EPR) schemes, such as France’s AGEC law, which shifts recycling costs to vehicle makers, are emerging as one tool to address these challenges. Public-private partnerships and shared investment models are also showing promise in distributing financial risks and accelerating adoption.
Linking Plastics Circularity with Material Substitution
While efforts to boost plastics circularity are gaining momentum, some experts warn that recycling alone will not address all challenges. A parallel trend to watch is the push to reduce overall plastics dependency in vehicle design, substituting alternative materials like bio-based composites or metal alloys where feasible.
Early data suggests that a combined approach—reducing total plastic use while ramping up recycling—could have a greater overall environmental impact. As automotive suppliers and OEMs rethink materials selection, integrating circularity efforts with material substitution strategies may offer a broader path to supply chain sustainability.
