The pilot aims to address the challenges associated with recycling plastics from end-of-life vehicles (ELVs) and sees eight global leaders in the recycling and chemical industries join forces: BASF, Covestro, LG Chem, LyondellBasell, Mitsubishi Chemical Group, SABIC, SUEZ and Syensqo.
Global Impact Coalition
[RT] Could you outline what the project entails?
[CT] Automobiles are not designed for circularity. While metals are recycled, over 80% of end-of-life vehicle (ELV) plastics are landfilled or incinerated. The industry faces growing regulatory pressure (EU ELV Directive) and rising OEM demand for recycled plastics. However, current dismantling and shredding practices produce mixed plastic streams that cannot be effectively recycled, and dismantlers lack the knowledge and systems to recover high-value plastic fractions.
The pilot will optimise plastic recovery from 100 ELVs, ensuring chemical companies access specific polymer feedstocks for recycling. The project takes place in the Netherlands and Germany over 12 months and partners with dismantlers, shredders and sorters to recover plastics and send them to coalition members for mechanical and chemical recycling. The focus is on evaluating quality, feasibility and scaling potential.
By refining ELV plastics collection, sorting and recycling processes and producing purer polymer fractions, the pilot will generate actionable insights to help meet regulatory requirements. It also demonstrates a scalable, sustainable business model for global application.
[RT] Why has the Global Impact Coalition selected the automotive industry as the pilot’s subject?
[CT] Not only does the automotive industry have a steady material stream and a structured value chain covering collection, dismantling, sorting and shredding, but over 80% of ELV plastics are currently landfilled or incinerated in the EU.
The EU ELV Directive increases pressures on OEMs to use recycled plastics, including closed-loop solutions from ELVs. GIC members have recycling targets but struggle to meet them due to an insufficient supply of suitable waste materials.
[RT] What are the key markers of success for the Automotive Plastics Circularity pilot? And how soon after the launch could you start seeing the benefits?
[CT] The pilot’s primary goal is to transform how automotive plastics are collected, sorted and recycled.
Success will be measured by several factors, including the insights gained on optimising dismantling and recycling processes, the collaboration between end-of-life players and beginning-of-life stakeholders and the ability to refine and scale the approach in additional markets.
In terms of a potential timeline of success, benefits will emerge immediately as learning is key. The pilot is already creating progress toward a circular model by bridging gaps between different parts of the value chain.
[RT] Why were Germany and the Netherlands selected for the pilot’s first locations?
[CT] The Netherlands has implemented an effective take-back system for end-of-life vehicles, achieving a reuse and recovery rate for recycling of over 98% by weight. A comprehensive national dismantling system for end-of-life vehicles was established and is managed by Auto Recycling Nederland (ARN), which oversees a network of authorised treatment facilities nationwide.
As for Germany, it hosts some of the most advanced sorting and shredding facilities in Europe. The proximity to both dismantlers and coalition member companies ensures efficient material flow. The ELV plastic recycling will be carried out by all member companies at their sites.
[RT] Looking ahead, could similar pilots in other industries be on the cards?
[CT] The model could be adapted to sectors including electronics, furniture, toys, consumer goods, white goods and appliances. Across industries, plastics are often treated as waste rather than valuable resources. By applying this circular approach, it is possible to shift from disposal to recovery, closing the loop across multiple sectors.
