The European Union has reached a provisional agreement to implement stricter circularity requirements for new vehicles, mandating recycled plastic content and expanding end-of-life obligations for automotive composites. Under the deal agreed by the European Parliament and Council in December 2025, new vehicles must contain a minimum of 15% recycled plastics within six years and 25% within ten years, with at least 20% sourced from closed-loop recycling of end-of-life vehicles (ELVs)[1]. The regulation extends to heavy-duty vehicles, motorcycles, and special-purpose vehicles, and introduces extended producer responsibility and export restrictions for non-roadworthy used vehicles[1].
Background
The agreement builds on the European Commission's July 2023 initiative to consolidate circular economy objectives in the automotive sector by merging the End-of-Life Vehicles Directive with related type-approval legislation[2]. Environmental and recycling stakeholders have emphasized the need to extend recycled content requirements beyond plastics to materials such as steel, aluminium, and critical raw materials[3]. Recent industry developments include the formation of the European Circular Composites Alliance (ECCA) in December 2025, which aims to align composite stakeholders with EU policy frameworks[4].
Details
The provisional deal sets phased recycled plastic targets: at least 15% within six years and 25% within ten years from the date the regulation takes effect[1]. At least 20% of the recycled plastic must come from closed-loop recycling of ELVs, supporting material retention within the EU economy[1]. Automotive composites-including thermoset and thermoplastic prepregs, carbon fiber-reinforced plastics, and glass fiber composites-will be subject to these mandates where such materials are used in vehicle structures.
The Commission will conduct feasibility studies and, within one year of the regulation's entry into force, may introduce mandatory recycled content targets for other materials such as steel, aluminium, magnesium, and critical raw materials, via delegated acts[1]. The Council supports a three-stage schedule for recycled plastics: 15% at six years, 20% at eight years, and 25% at ten years, and permits temporary derogations when challenges with supply or pricing occur[5].
Manufacturers will be required to design vehicles to allow easy removal of components for reuse, recycling, or remanufacturing, and to participate in extended producer responsibility schemes covering ELV collection and treatment costs after three years[6]. In addition, the export of non-roadworthy used vehicles will be banned five years after the regulation takes effect to prevent environmental dumping and retain secondary material value within the EU[7].
Outlook
The provisional agreement must now receive formal approval from both the European Parliament and the Council before entering into law. Implementation is scheduled to begin two years after the regulation takes effect[1]. Composite suppliers, OEMs, and remanufacturers will need to evaluate supply chains and material sourcing to comply with recycled content requirements. Delegated acts from the Commission regarding metals and critical raw materials will further define compliance for composites with hybrid or metal-reinforced structures.
