A coalition of global industry giants has joined forces to launch a pioneering Automotive Plastics Circularity pilot project, aiming to revolutionize the recycling of plastics from end-of-life vehicles (ELVs). The initiative, spearheaded by the Global Impact Coalition (GIC), a CEO-led collaborative platform originally incubated at the World Economic Forum, brings together seven leading companies in the chemical and recycling sectors: BASF, Covestro, LyondellBasell, Mitsubishi Chemical Group, SABIC, SUEZ, and Syensqo.

The project addresses the pressing issue of ELV plastic waste, with over 800 million metric tons incinerated or landfilled annually in the EU alone. This substantial loss represents both an environmental burden and a missed opportunity to reclaim valuable resources. The pilot aims to transform this waste stream into a source of recycled plastics, significantly boosting closed-loop recycling rates within the automotive industry.

The pilot program, situated in the Netherlands and Germany, will involve the dismantling, shredding, and sorting of plastic components from 100 ELVs. These plastics will be categorized into 10 different polymer types and automotive parts. Participating companies will then employ their respective recycling technologies to process the sorted fractions. A central focus of the pilot is the bulk aggregation of ELV plastics, enabling the testing and optimization of a novel approach to dismantling, sorting, and recycling under real-world conditions.

"This collaboration marks a turning point for the industry," stated Charlie Tan, CEO of the Global Impact Coalition. "Recycling ELV plastics has been a persistent challenge, with current recycling rates languishing below 20%. By uniting key players across the automotive value chain – from automakers and dismantlers to sorters, recyclers, and the chemical industry – we are forging the necessary connections to close the loop on plastics."

To ensure the project's success, the partners have established a robust network encompassing dismantlers, shredding companies, and sorting facilities. By consolidating demand for a diverse range of ELV polymers, the initiative seeks to demonstrate the economic viability of large-scale closed-loop recycling systems. The collective reach of the project members, representing a significant portion of the global plastics industry, underscores the pilot's relevance for Europe and other key regions.

The project aligns with evolving regulatory landscapes, notably the EU's proposed ELV regulations. These regulations mandate that by 2030, 25% of plastics in new cars must be derived from recycled materials, with 25% of that originating from closed-loop recycling (i.e., from ELVs). The pilot aims to validate the scalability of solutions capable of meeting these targets, thereby reducing reliance on landfilling and incineration.