How Recycled plastics can help turn the automotive industry circular

[Reading time: 5 minutes]

The circular economy is a system that aims to eliminate waste and pollution, circulate products and materials, and regenerate nature. It is a model that can be applied to all industries, designed to be beneficial for the environment, for business, and for people. The automotive sector has a major role to play in ensuring a successful transition to a circular economy due to its size and the amount of resources it requires. This article examines the use of recycled materials in the automotive industry, their benefits, and their importance in light of upcoming legislation.

In 2023, 94 million motor vehicles were produced worldwide. And every year, an estimated 40 million vehicles reach the end of their life globally. In Europe, nearly 7 million end-of-life vehicles (ELVs) are treated annually in accordance with the ELV Directive, a decree comprised of a set of rules to improve the circularity of the automotive industry. 6.6 million ELVs produce over one million tons of plastic waste. Plastic is the 2nd most used material in vehicles after metal. An average car contains between 150 and 200 kg of plastic. And the percentage of plastic in vehicles is expected to increase; low emission vehicles require lightweight materials.

Motor vehicles are a large part of the economy, contributing to about 3% of the world’s total GDP output. The ability to properly treat and recycle ELVs is a necessary step to meet the requirements of upcoming legislation such as the End-of-life Vehicles Regulation and the European Green Deal. The latter of which aims at reaching zero emissions in the EU by 2050. Indeed, it has been estimated that the equivalent of 1 million tons of CO2 could be avoided by properly recycling end-of-life vehicles in the EU.

Transitioning to circularity in the automotive industry comes with many challenges: The sector is highly regulated, the components of a car must meet safety, quality and performance standards. However, there are already real use cases where the technology has been developed to meet the quality requirements of the automotive industry. #tide and Motherson have delivered a proof-of-concept with the development of an instrument panel using #tide’s mechanically recycled ocean-bound polypropylene. A successful demonstration that our #tide ocean material can replace large plastic components in automobiles without compromising quality and safety, while still creating a strong social and environmental impact. This collaborative project was recognized with the 2024 STARTUP AUTOBAHN Sustainability Award powered by Plug & Play in Stuttgart, Germany.

Benefits of circular solutions for the car industry

Design thinking is a critical component of circularity. A successful transition to circularity in the automotive industry can only be achieved by implementing designs that take into account the proper handling and recovery of ELVs. Studies suggest that here are many benefits of incorporating circular solutions into the automotive industry:

• Generating €1.8 billion net revenue by 2035

• 22’000 jobs created in the EU by 2035

• Enhance the revenue stream in the waste management and recycling industry

• A reduction of 12.8 million tons of CO2 emissions by 2035

• A better valorization of 5.4 million tons of material by 2035

The demand for recycled plastics in the automotive sector will increase with the implementation of new regulations. The EU has set targets to have recycled content of at least 25% of all the plastic in new cars by 2030, of which 25% should be recycled from ELVs, and to recycle 30% of plastics in ELVs.

Circularity is possible only with quality, accountability and traceability. To be able to keep resources in the circle, we need to keep track of them. Which is why some of the goals aim at providing more transparency. The introduction of circularity passports and digital tracking solutions will help to monitor the journey of ELVs, as 3.5 million ELVs disappear from EU roads in the EU every year (exported or disposed of illegally). The establishment of national Extended Producer Responsibility schemes to improve the quality of recycled materials from ELVs and to strengthen cooperation between recyclers and manufacturers will also play an important role.

Frans Timmermans, Executive Vice-President for the European Green Deal states: “Everyone in Europe should be able to get from A to B in the most sustainable way possible. In the next years, more and more zero-emission cars will come to the market, increasing the demand for valuable, primary material. Our proposal today will make sure that we recycle and reuse as many of these materials as possible, giving new life to our cars’ components, and greatly reducing the environmental footprint of our road transport”.

While much remains to be done to achieve the goals ahead, the potential is great: Companies such as #tide and Motherson, have already proven that the quality of #tide's recycled plastic materials make them ideal for the automotive industry. But not only injected recycled plastic components are a valuable replacement for virgin material. Also textiles made with #tide ocean material can lead to a significant change, proven by our dutch partner Condor Group and their automotive branch Condor Cartex. They have successfully developed car interiors such as floor mats by implementing our recycled ocean-bound plastic. These proofs of concept are a great step forward, as the demand for recycled materials in the automotive sector is growing, and upcoming legislation will work to ensure a transition that benefits everyone - the economy, the environment, and people.