The European Union agreed to implement stricter circularity requirements for vehicles, effective April 3, 2026, introducing recycled-content thresholds and design standards with significant implications for automotive composites. New legislation mandates that plastics in new vehicles must contain at least 15% recycled plastic within six years of the regulation's entry into force and 25% within ten years, with 20% of that recycled content sourced from closed-loop systems such as end-of-life vehicles. The Commission may set recycled steel and aluminium targets two years after the regulation begins, following feasibility assessments. These provisions are part of a comprehensive revamp of end-of-life vehicle (ELV) rules and circularity benchmarks across the automotive sector. Ongoing negotiations between the European Parliament and Council aim to finalize the legislation.
Background
These requirements stem from a Commission proposal issued on July 13, 2023, designed to align circularity and end-of-life standards for vehicle design across the EU by superseding current ELV and type-approval directives. The regulation sets reusability, recyclability, and recoverability thresholds at 85% and 95% by mass, respectively, and restricts hazardous substances in line with REACH and similar frameworks. Its scope expands to include additional vehicle classes, such as trucks and motorcycles, not only cars and vans. The legislation replaces Regulation (EU) 2018/858 and annuls the ELV and 3R type-approval directives.
Details
The provisional agreement states that plastics in new vehicle types must meet the recycled content targets outlined above. A specified portion of this recycled plastic must be sourced from end-of-life vehicles or components extracted during vehicle operation, promoting a closed-loop supply chain. The Commission will define recycled steel and aluminium objectives two years post-enactment, pending feasibility findings. A digital "Circularity Vehicle Passport" must be implemented within 72 months of the regulation's start, containing information on material composition, recycled content, and instructions for part removal or replacement. The Council has suggested measures to ease the regulatory load, such as categorizing circularity strategies by vehicle type rather than model and ensuring flexibility in how member states implement extended producer responsibility (EPR). Producers will be responsible for treatment costs and must ensure exported ELVs comply with quality standards.
Industry associations have responded cautiously. The European Composites Industry Association (EuCIA) and its partners advocate for the continued inclusion of thermoset composites in plastic recycling targets to support innovation. They caution against mislabeling composite materials as non-recyclable in EPR requirements and recommend expanding mandatory removal lists to improve composite recycling rates. EuCIA emphasizes that industrial-scale recycling technologies for fiber-reinforced composites are already operational.
Outlook
Interinstitutional negotiations between Parliament and Council are slated to finish in late 2026, with implementation expected to begin in 2027. Significant investment is anticipated in composite recycling infrastructure and design-for-recyclability initiatives. OEMs and Tier 1 suppliers will need to update material selection processes, end-of-life planning, and supply-chain documentation to align with new mandates. The demand for renewable and recycled composites is forecast to rise, requiring swift industry adaptation.
