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Automotive Industry Embraces Recycled Plastics as Regulatory Pressures Mount

Recycling and Waste Management

Business Honor
16 August, 2024

Automakers push for recycled plastics in vehicles to meet EU regulations and reduce environmental impact.

Automotive manufacturers worldwide are making increased efforts to include recycled plastics in their products as regulatory pressures increase. In a proposal put forward by the European Commission, new vehicles sold must contain at least 25% recycled plastic by 2031. Non-compliant vehicles could be banned from sale in the European Union, which will lead companies to invest in plastic recycling innovation.

In Japan, however, just 3% of recycled plastic is used in auto parts as of 2022, showing that there are quite a number of challenges the manufacturers face in using recycled plastics. It is complex and time-consuming sorting plastic components in scrapped vehicles that makes recycling quite difficult.

Honda is taking the lead, intending to create a supply chain for recycled plastics by 2040, in partnership with chemical manufacturers and recycling companies. The carmaker is targeting the reduction of plastic types used in its vehicles by 60%, thus making the recycling process easier. The Honda e, the first mass-produced electric vehicle from the company, consisted of about 25 different kinds of plastic.

Other big carmakers take great leaps, too. Toyota set a new goal: at least 30 percent recycled plastic in new vehicles by 2030 in Japan and Europe. Nissan plans to recycle plastic from scrapped electric vehicles for new models alongside Renault. Subaru also has set its target as at least 25 percent recycled plastic in new models by 2030.

Because of the cost, recycled plastic is much more expensive than regular plastic, making it hard to mass-market such materials. The government of Japan is providing support in the form of a public-private entity that will make it easier to source recycled plastics, which may help bring down the expense. Recycled Automotive Materials Market - Plastics Are Expected to Reach $3.9 Billion by 2027.