The European Union is enacting a regulation requiring new vehicles to contain at least 15% recycled plastic starting September 2032, rising to 25% by September 2036, with at least 20% of the recycled content sourced from end-of-life vehicles or parts to enable a closed loop.

The rules emphasize better recovery and traceability of materials from end-of-life vehicles to curb illegal dismantling, abandonment, and exports misrepresented as second-hand sales.

The Commission will assess targets for recycled steel, aluminum, magnesium, and critical raw materials, potentially starting in 2033, addressing the automotive sector’s heavy dependence on virgin materials.

Details and full access to the article are behind a registration wall, with complete content available to subscribers.

Major players in the space include LKQ, EMR, Stena Recycling, Derichebourg, Sims Limited, Toyota Tsusho, Umicore, Redwood Materials, Glencore Battery Recycling, INDRA Automobile Recycling, Galloo, Kuusakoski, Keiaisha, ASM Auto Recycling, Fenix Parts, IGAR Reciclagem, Rosmerta Recycling, Eccel Recycling, Autocirc, and CERO Recycling.

Growth opportunities for recyclers are expanding as EV fleets grow, with battery recovery becoming an increasingly important revenue stream.

The report provides comprehensive analyses, including Porter’s Five Forces, PESTEL, regional forecasts, and segment breakdowns by vehicle type, propulsion, revenue streams, and regions.

The framework aims to create new business opportunities and improve spare-part availability for the second-hand car market through higher recycling and reuse.

Over time, investment is expected to shift toward formal recycling infrastructure and improved resource recovery capabilities.

Owners will eventually be able to hand over a complete end-of-life vehicle to an authorized facility at no charge, though fees may apply if major parts were removed without proper documentation.

Stakeholders are divided: some warn against costly expansions without proportional gains, while others see the final text as politically compromised by industry influence.

In 2025, the passenger car segment accounted for the majority of market value and share, with ICE vehicles still representing the vast majority of market value, underscoring the dominance of traditional powertrains and mature recycling processes.