In June, the European Parliament approved new rules to make the automotive sector more circular, covering vehicles from design to end-of-life. Based on feasibility studies, the Commission will be able to introduce targets for other materials in the future, such as recycled steel, aluminium, magnesium and critical raw materials.

With a view to maximising re-use, recycling and recovery, new cars will need to be easier to dismantle. They will also need to contain increasing amounts of recycled plastic—15% within six years and 25% within ten years. A minimum of 20% of this plastic must come from materials recovered from end-of-life vehicles or used parts. 

Three years after these new rules come into effect, extended producer responsibility will require manufacturers to finance the collection and treatment of end-of-life vehicles. Five years after, exports of non-roadworthy vehicles will be banned in order to prevent illegal treatment and dismantling. 

The new rules embed circular economy requirements in a major industrial value chain, with implications for design, recycled content markets and recycling of vehicles. The regulation now awaits final Council approval before entering into force 24 months later.