Omni and PRI scale plastics recovery from scrapped vehicles

OmniSource and Plastic Recycling are scaling a recycling supply chain for automotive shredder residue (ASR) plastics in North America.

The collaboration focuses on recovering plastics from end-of-life vehicles (ELVs) and converting them into automotive-grade recycled compounds. The partners say the initiative supports growing demand for traceable recycled content from carmakers and suppliers.

Based in Indianapolis, Plastic Recycling already sells ASR-derived compounds into the domestic automotive market. Several official equipment manufacturers and Tier 1 suppliers are currently evaluating the material.

Automotive-grade pellets

Under the agreement, Omni will supply large ASR volumes from its metals recycling operations. Historically, much of this material had limited commercial value.

Plastic Recycling will process the feedstock into recycled pellets suitable for automotive applications. The company says its operations are backed by ISCC PLUS Mass Balance certification and nearly four decades of plastics recycling experience.

Brandon Shaw, president of Plastic Recycling, says the technology already operates commercially. ‘We’ve already proven the process works. What Omni brings is the feedstock volume to move this into a scaled supply chain.’

The companies stress the importance of domestic sourcing. Automakers increasingly seek recycled materials with verified origins and traceable supply chains.

AI sorting trials

The collaboration also includes trials with AI sorting technology providers. The goal is to improve plastic recovery rates from mixed ASR streams.

Higher sorting accuracy and lower contamination levels could strengthen the economics of ASR plastics recovery. In turn, this may help expand commercial supply volumes.

Matt Bell, vp of metals recycling at Omi’s parent company Steel Dynamics, believes the new system will create a direct route from ELVs to finished recycled compounds, addressing a longstanding recycling challenge. ‘We’re creating a traceable circular supply chain that delivers real environmental value.’

More regulatory pressure

The initiative comes as carmakers face increasing regulatory pressure around recycled content and ELV management. In particular, the proposed European Union ELV regulation could increase demand for certified post-consumer recycled plastics.

Omi and Plastic Recycling argue that large-scale domestic supply chains remain limited, especially for automotive-grade ASR plastics.

They are discussing commercial supply volumes and future AI sorting deployments with additional details reported in the coming months.