New EU rules for end-of-life vehicles introduce mandatory recycled plastics targets

The European Union has introduced a new regulatory framework aimed at increasing circularity across the automotive sector, covering the entire vehicle lifecycle – from design and production to collection, dismantling and recycling at the end of its useful life.

Regulation (EU) 2026/1738 on circularity requirements for vehicle design and on management of end-of-life vehicles entered into force on 13 August 2026.

For the plastics industry, one of the most significant changes is the introduction of mandatory targets for the use of recycled plastics in new vehicles.

From September 2032, new vehicle types covered by the Regulation will have to contain at least 15% recycled plastic from post-consumer plastic waste, calculated against the total amount of plastic used in the vehicle.

From September 2036, this target will increase to 25%.

The Regulation also aims to establish a more direct link between end-of-life vehicles and future vehicle production. At least 20% of the recycled plastic required to meet the target will have to originate from plastics recycled from end-of-life vehicles or from vehicle parts and components.

This requirement could become particularly important for the development of closed-loop recycling streams within the European automotive industry.

In parallel, from 1 January 2032, Member States will have to ensure the annual recycling of at least 30% of the average total weight of plastics contained in end-of-life vehicles.

Impact on the plastics industry
The new requirements could significantly change relationships between vehicle manufacturers, component suppliers, compounders and recyclers.

For OEMs and Tier suppliers, material selection will increasingly involve more than performance, cost and availability. The origin of recycled materials, traceability and the ability to demonstrate recycled content will become increasingly important criteria.

For recyclers and compounders, the Regulation could create additional demand for recycled materials capable of meeting demanding technical specifications while providing documented traceability.

At the same time, achieving the targets will require further development of infrastructure for the collection, dismantling, sorting and separation of plastic components from end-of-life vehicles.

Another important element will be the methodology used to calculate and verify recycled content. The European Commission must establish this methodology by 31 August 2028. The Regulation also provides rules for the use of mass-balance methodology for certain non-mechanical recycling technologies.

Through these measures, the EU aims to turn end-of-life vehicles into a more significant source of secondary raw materials and reduce the European industry's dependence on imported virgin resources.

For the plastics industry, the implications could be substantial: the automotive sector may become one of the key drivers of European demand for high-quality recycled materials with demonstrable traceability.

Source: European Commission – DG Environment