EU Advances New Rules to Keep Valuable Vehicle Materials in the Circular Economy
General NewsNews
29 January 2026

EU Advances New Rules to Keep Valuable Vehicle Materials in the Circular Economy

New EU ELV rules will reshape car design, boost recycled plastics, improve dismantling and keep critical raw materials circulating within Europe.

The European Union (EU) is moving closer to overhauling how cars are designed, manufactured and processed at the end of their life cycle, following a provisional deal between the European Parliament and the Council on a new End of Life Vehicles (ELV) Regulation.

The legislation aims to help Europe recover more raw materials from scrapped cars while reducing environmental impact and strengthening industrial resilience.

Europe’s automotive sector relies heavily on resources such as steel, aluminium, copper and plastics. Under the new rules, improved collection and dismantling systems are expected to keep far more of these materials circulating within the EU. The Commission estimates that the updated framework could make it possible each year to reclaim large quantities of rare earth elements along with millions of tonnes of metals—contributing to climate goals and reducing reliance on imported resources.

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Main Provisions

The agreement introduces several significant measures:

Redesign for easier dismantling: Future vehicles will need to be constructed in a way that allows components to be removed without unnecessary complexity. Manufacturers will have to provide clear technical guidance covering both repairs during a vehicle’s lifespan and its end-of-life treatment.

Mandatory recycled plastic content: From 2036, at least 25% of the plastics used in new vehicles must be recycled, and a fifth of that recycled content must originate from ELVs. This marks the EU’s first binding requirement on recycled plastics in cars and applies equally to domestic production and imports.

Higher recycling quality standards: At least 30% of plastic recovered from scrapped vehicles must be processed into high quality recycled material.

Support for reuse and refurbishment: New rules are designed to expand the availability of affordable second-hand parts by encouraging remanufacturing and repair.

Reinforced producer responsibility: Harmonised Extended Producer Responsibility schemes will ensure that manufacturers finance proper ELV treatment and contribute to improving recycling outcomes.

Stricter enforcement: Authorities will carry out more inspections and apply clearer criteria to prevent unroadworthy vehicles from being exported outside the EU, keeping valuable materials within regulated recycling systems.

What Comes Next

Once formally adopted by the Parliament and the Council, the regulation will take effect 20 days after being published in the EU’s Official Journal. The initiative builds on concerns over millions of untracked vehicles disappearing from EU records every year and is closely tied to broader strategies supporting a circular and competitive European automotive industry.

S

Staff Writer

Reporting from the front lines of the automotive industry, delivering expert analysis and the technical updates that drive the South African motor sector forward.