The European Union has introduced new regulations mandating higher shares of recycled plastics, including composites, in new vehicles to enhance circularity amid escalating demand for EV battery enclosure materials. Lawmakers established compulsory targets of 15% recycled plastic content within six years and 25% within ten years of the law's implementation, with at least one-fifth sourced from closed-loop systems using materials recovered from end-of-life vehicles. The regulation also extends producer responsibility throughout the vehicle lifecycle, bans the export of non-roadworthy used vehicles after five years, and expands its scope to cover heavy-duty vehicles, motorcycles, and special-purpose vehicles. Negotiations between EU institutions continue.
Background
The provisional agreement advances the EU's circular economy agenda by updating previous directives with stricter design and end-of-life requirements. It requires vehicle components to be designed for easier removal, reuse, and recycling. The regulation aligns with the European Green Deal and the Circular Economy Action Plan, following a feasibility study that explores future targets for recycled metals and critical raw materials. Enhanced traceability of end-of-life vehicles aims to mitigate illegal dismantling and the export of waste.
Details
The regulation sets two phased targets: 15% recycled content within six years and 25% within ten years, with a minimum of 20% from closed-loop recycling, specifically involving materials such as plastics recovered from end-of-life vehicles1Circular economy: Council and Parliament strike deal on rules for vehicle circularity and management of end-of-life vehicles - Consilium. The scope now includes heavy-duty trucks, motorcycles, and special-purpose vehicles, while maintaining exemptions for certain low-volume producers1Circular economy: Council and Parliament strike deal on rules for vehicle circularity and management of end-of-life vehicles - Consilium. After five years from entry into force, exporting non-roadworthy used vehicles will be prohibited, retaining recyclable materials within the EU2EU agrees recycled content for cars | Latest Market News. Manufacturers will assume extended producer responsibility obligations three years after implementation, covering vehicle collection and treatment, supported by a cross-border mechanism to ensure financial accountability across member states1Circular economy: Council and Parliament strike deal on rules for vehicle circularity and management of end-of-life vehicles - Consilium.
Carbon- and glass-fiber-reinforced composites and recycled thermoplastics are expected to have expanded roles in EV battery enclosures and lightweight components. The revised EU Waste Framework Directive requires a 30% recycling rate for carbon-fiber composites by 2030. OEMs are beginning to incorporate recycled carbon-fiber prepregs into battery enclosures and underbody shields, as seen in the BMW iX and Mercedes-Benz EQ series3Auto Lightweighting Advances with Recycled Carbon-Fiber Prepregs | Plastics Insider.
Outlook
Formal adoption of the regulation is pending approval by the European Parliament and Council, with application anticipated two years after entry into force. Implementation is expected to drive investment in recycling infrastructure and material traceability across the EU. These phased recycled content targets and closed-loop requirements are poised to reshape composite supply chains, foster domestic recycling capacity, and increase the use of recycled composites in EV components.
