‘ELV plastic circularity technically feasible but not yet commercially viable’

The results of a pilot to assess the circularity of automotive plastics have been released by major players in the chemical industry. They show recovery is technically possible but commercial viability has not yet been established.

Eight companies – BASF, Covestro, LG Chem, LyondellBasell, Mitsubishi Chemical Group, SABIC, SUEZ and Syensqo – collaborated to process 100 end-of-life vehicles (ELVs) through a full dismantling, shredding and sorting chain.

Together, they recovered approximately eight tonnes of plastic from vehicles of different ages, makes and conditions.

Collaborative projects

The companies are members of the Global Impact Coalition (GIC), a ceo-led platform to build projects, partnerships and ecosystem that no single company could take on alone.

The GIC report says that more than 800 000 tonnes of plastic from ELVs are incinerated or landfilled in Europe alone. ‘The pathway to addressing this is understood but the system to deliver it at scale does not yet exist.

‘The pilot establishes technical feasibility. Plastic components can be recovered from ELVs and processed into material suitable for recycling. However, commercial viability remains to be established.’

The report says the primary barrier is not technology but coordination, economics and the absence of a value chain framework that aligns incentives across all actors: OEMs, dismantlers, waste management companies and chemical producers.

GIC ceo Charlie Tan notes in the foreword to the report: ‘Closing the loop on automotive plastics is no longer a question of ambition, it is a question of execution.’

Regulatory pressure

New EU regulations require new cars to contain 25% recycled plastic by 2036, with at least 20% sourced from closed-loop vehicle recycling. The current closed-loop share stands at approximately 2.5%.

China processed more than 7.9 million ELVs in 2024 and launched a national action plan in December 2025 targeting increased recycled material use in automotive manufacturing by 2030.

GIC says the findings will shape the next phase of work by evaluating economic viability. ‘This will be done by developing component specific scenario modelling, and key experiments on automation, chemical recycling, and design for recycling.’