Reaching 25pc recycled content in cars will be a challenge, but industry groups see opportunities to drive investment in the industry, with a focus on rPP and thermoset plastics
The EU's proposal to mandate 25pc recycled content in automotive plastics within six years shows strong intent to support the recycling industry, Alejandro Navazas, scientific and policy advisor of European recycling firm Euric, told Argus.
The European Commission proposed end-of-life vehicle (ELV) regulations last week, setting out a series of measures including a requirement for plastic used by carmakers to contain at least 25pc recycled content. The requirement would apply six years on from the adoption of the regulation, which now needs to be considered by the European Parliament and member states.
The commission had considered a number of different recycled content percentages and timelines, laid out in a report by the Joint Research Centre (JRC), Navazas said, and Euric was pleasantly surprised that it decided to take a hardline approach in line with calls from the recycling industry.
Industry must put its foot down
Reaching 25pc recycled content in all cars will not be easy. Automotive industry body Acea expressed concern about the availability of suitable recyclates, saying that the targets do not sufficiently take into account "imbalances in the demand and supply of recycled materials and existing technology gaps".
Polymers from mechanical recycling are not an alternative to virgin plastic in all markets. The need for precision materials in applications that pertain to safety or engine function, concern about the odour and appearance of recycled plastic, and cost are all challenges to the uptake of recycled plastic in cars.
The European automotive industry used 128,000t of recycled plastics in 2021, data from industry body Plastics Europe show, compared with a total automotive plastic market of 4.4mn-6mn t/yr (Plastics Europe reported the smaller figure for 2021, while the commission gave the larger figure). The regulation would apply for newly type-approved vehicles only, meaning that the requirement for recycled content would be stepped in over time, but the JRC still forecast recyclate demand of 757,000 t/yr by 2030, and more than 1mn t/yr by 2040, suggesting an annual growth rate of 22-29pc would be needed in the next seven years.
Navazas was confident that the targets are achievable based upon existing mechanical recycling technologies. "Some front-runners in the [car] market are already doing 20pc recycled content, mainly in exterior parts," he said. Indeed, the 25pc target is not markedly different from the individual voluntary targets that some car companies already have (see table).
Navazas also highlighted the commission's stipulation that a quarter of the recycled plastic used should come from automotive scrap, forming a "closed loop".
"Responsibility will lie with the manufacturers to boost supply by making cars more recyclable," he said. This point of view could receive some pushback from the car industry, with Acea noting that some design features on cars that can make them harder to recycle — such as carbon-fibre reinforced plastic parts — have been made with lightweighting and therefore emissions saving in mind.
Pan-European regulations for ELVs would also ensure more cars entering the recycling stream, Navazas said, citing figures that 40pc of the 10mn vehices that reach the end of their life in Europe every year are currently "lost" rather than recycled domestically.
More cars entering the waste stream should enable the relatively small number of companies that specialise in recycling automotive plastics to grow, he said. Current specialists include UK firm MBA Polymers, German recycler Grannex, Swedish company Stena and Galloo Plastics in France.
Thinking outside the glove box
The regulation news will be seen as an opportunity by segments of the recycling industry. rPP is the most common automotive plastic, and recyclers and compounders are likely to increase their focus on creating grades that can be suitable for the automotive industry. Some firms have a head start, such as TotalEnergies through its partnership with Plastic Omnium and investment in Synova.
But, with European capacity for recycling rigid polyolefins at 2.8mn t/yr on an input basis (including HDPE) in 2021, carmakers are likely to branch out into other materials to reach a 25pc target. Even assuming that the regulations drive capacity growth, finding more than 700,000 t/yr of rPP suitable for car production by the end of the decade will be tough, particularly if last year's PPWR proposal is adopted and increases competition for tonnes from the packaging industry.
Recyclers who are able to handle less-commonly recycled engineering polymers, such as polystyrene acrylonitrile-butadiene-styrene (ABS), may see a chance to benefit.
The chemical recycling industry will also sense an opportunity. The ability to supply recycled polymers that are identical to virgin material would allay any concerns about appearance, smell or functionality of recyclates for the automotive sector. Navazas agreed that chemical recycling can make a contribution by focussing more on thermoset plastics, and suggested that it be used sparingly and not dilute carmakers' efforts to design cars to be recycled by mechanical means.
Further down the road
The proposal is the first example of the commission's willingness to apply recycled content requirements outside of the packaging industry, and will be seen as a step in the right direction by the recycling industry.
Euric would like to see similar legislation put in place for construction materials and electronic parts, both of which are already major users of recyclates in Europe, Navazas said. He did not think that any firm discussions over extending recycled content requirements to other industries are currently ongoing, but the proposal — together with PPWR — suggests that the commission supports the idea that mandatory requirements will be better than voluntary commitments for boosting recyclate use. This is a perspective that the recycling industry will welcome as an effective way to drive investment in the industry.
