Every year, more than 800,000 tonnes of plastic from end-of-life vehicles in Europe are still incinerated or landfilled, a stark indicator of how far the automotive industry remains from achieving true circularity.
Against this backdrop, a new pilot project led by the Global Impact Coalition confirms that closing the loop is technically possible, but far from being commercially viable at scale.
The initiative, the first of its kind launched by the chemical industry, brought together eight major players – BASF, Covestro, LG Chem, LyondellBasell, Mitsubishi Chemical Group, SABIC, SUEZ and Syensqo – to test a full recycling chain for plastics from end-of-life vehicles (ELVs).
As part of the pilot 100 vehicles of different ages, makes and conditions were processed through dismantling, shredding and sorting, enabling the recovery of around eight tonnes of plastic suitable for recycling.
The findings confirm that the technical side of the equation is largely in place. Plastics can be extracted, sorted and reprocessed into usable materials. However the study makes clear that technology is not the main bottleneck.
According to the report, the key challenge lies in coordination and economics, specifically, the lack of a value chain framework capable of aligning incentives across all actors, from OEMs and dismantlers to waste management operators and chemical producers.
“Closing the loop on automotive plastics is no longer a question of ambition, it is a question of execution,” said Charlie Tan in the report’s foreword.
The urgency is increasing, particularly in Europe, where new regulations require that by 2036 new vehicles must contain 25% recycled plastic, with at least 20% sourced from closed-loop systems. Today, that figure stands at just 2.5%.
The challenge is global. China alone processed more than 7.9 million end-of-life vehicles in 2024 and has already launched a national plan to increase the use of recycled materials in automotive production by 2030.
Looking ahead, the next phase of the project will focus on bridging the gap between technical feasibility and economic viability. Planned activities include scenario modelling at component level and further testing in areas such as automation, chemical recycling and design for recycling.
globalimpactcoalition.com