EU End-of-Life Vehicles Rule Pushes Cars Toward a Circular Economy

The EU has reached an agreement on the ELV (End-of-Life Vehicles) Regulation to make the automotive sector more circular by improving the recycling of steel, aluminum, copper, and plastic from end-of-life vehicles.

The European Union is accelerating the automotive circular economy

The European Parliament and Council have reached an agreement on the new regulation on end-of-life vehicles (ELVs) , which aims to radically change the way cars are designed, dismantled, and recycled.

Among the key innovations, the text introduces mandatory targets for recycled plastic content: from 2036, at least 25% of the plastic used in vehicles must come from recycled material, of which 20% must be recovered from end-of-life vehicles. Furthermore, the regulation significantly strengthens producer responsibility by imposing higher standards for the dismantling, recycling, and reuse of components, thus keeping steel, aluminum, copper, and rare earths within the European economic cycle.

The automotive industry is among the largest consumers of raw materials such as steel, aluminum, copper, and plastic . Improving the recovery and reuse of these resources within the EU not only reduces dependence on imports but also contributes to the continent’s environmental and climate goals. The new measures in the ELV Regulation could enable the recycling and reuse of hundreds of tonnes of rare earths, as well as 5-6 million tonnes of steel, 1-2 million tonnes of aluminum, and 0.2-0.3 million tonnes of copper, thus supporting a competitive and sustainable automotive industry.

“At a time when access to raw materials is under increasing global pressure, better use of the precious resources contained in our old cars is good for the environment, competitiveness, and resilience. This regulation is the right tool to achieve our circular economy ambitions, ensuring that the valuable materials inside every vehicle are recovered at the end of their lifecycle and retained within our economy,” commented Jessika Roswall , Commissioner for Environment, Water Resilience and a Competitive Circular Economy.

The regulation will enter into force 20 days after its publication in the Official Journal of the EU, following formal adoption by the Parliament and the Council.

Key measures of the EU regulation

The new regulation stipulates that vehicles must be designed to ensure easier dismantling, accompanied by clear and detailed instructions for the removal and replacement of components both during use and at the end of their life.

For the first time in Europe, mandatory targets for the recycled plastic content of vehicles are being introduced: starting in 2036, at least 25% of the plastic used must come from recycled material , 20% of which must come from end-of-life vehicles. The rule will apply to both EU-produced and imported vehicles, ensuring a level playing field and stimulating demand for recycled materials.

The regulation also improves standards for the treatment of end-of-life vehicles, allowing for the recovery of more consistent and higher-quality materials, with a minimum recycling target of 30% for plastics from end-of-life vehicles . It also incentivizes the reuse , remanufacturing , and refurbishment of components, increasing the availability of second-hand spare parts and offering consumers more affordable repair options.

Producer responsibility is strengthened through harmonized national Extended Producer Responsibility systems, which ensure proper financing of the treatment of end-of-life vehicles and promote higher-quality recycling.

Finally, enforcement will be stricter: more inspections and a clear distinction between old and end-of-life vehicles will ensure that only circular vehicles can be exported outside the EU, thus keeping materials within a sustainable recycling loop.

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(Featured image by Documerica via Unsplash)

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