A provisional agreement between the European Parliament and Council will introduce mandatory recycled-content targets, stronger producer responsibility and tighter controls on vehicle exports, aiming to accelerate the transition to a more circular automotive sector.
The European Union has reached a provisional political agreement on new rules governing the design, treatment and disposal of end-of-life vehicles (ELVs), marking a significant step towards a more circular automotive sector.
The agreement, welcomed by the European Commission, updates and replaces existing EU legislation on ELVs and covers the full vehicle lifecycle, from design and production through to dismantling, recycling and reuse. It is intended to reduce material losses, cut pollution and strengthen the EU’s resilience to supply-chain disruptions.
The automotive industry is one of Europe’s largest consumers of raw materials, including steel, aluminium, copper and plastics. According to the Commission, improved collection and treatment of ELVs could enable the recycling and reuse of hundreds of tonnes of rare earth materials, alongside an estimated 5–6 million tonnes of steel, 1–2 million tonnes of aluminium and up to 0.3 million tonnes of copper.
Mandatory recycled-content targets
A central element of the new Regulation is the introduction of the EU’s first mandatory recycled-plastic content targets for vehicles. From 2036, at least 25% of plastics used in vehicles must come from recycled sources, with 20% of that share originating from end-of-life vehicles.
The rules will apply equally to vehicles manufactured within the EU and those imported from third countries, with the aim of creating a level playing field and stimulating demand for recycled materials. The Regulation also allows the European Commission to set future recycled-content targets for other materials.
Improved treatment standards will require that at least 30% of plastics recovered from ELVs are recycled, supporting higher-quality material recovery and reducing reliance on virgin resources.
Design for dismantling and reuse
Under the agreed measures, vehicles will need to be designed to allow easier dismantling at end of life. Manufacturers will be required to provide clear and detailed instructions for removing and replacing parts, both during a vehicle’s operational life and when it is scrapped.
The Regulation also introduces measures to encourage reuse, remanufacturing and refurbishment, increasing the availability of second-hand spare parts. The Commission says this could benefit consumers by lowering repair costs and extending vehicle lifespans.
Stronger producer responsibility and enforcement
Producer responsibility will be strengthened through harmonised national Extended Producer Responsibility (EPR) schemes. These will ensure that manufacturers finance the collection and treatment of ELVs and incentivise higher-quality recycling outcomes.
Enforcement provisions have also been tightened. The agreement includes more inspections, clearer criteria distinguishing used vehicles from end-of-life vehicles, and a requirement that only roadworthy vehicles may be exported outside the EU. This is intended to prevent ELVs from being shipped abroad and ensure that valuable materials remain within regulated recycling systems.
Addressing vehicle losses
The Commission estimates that 3–4 million vehicles “disappear” each year in the EU, meaning they are deregistered without authorities knowing whether they were properly treated, illegally exported or abandoned. Poor handling of ELVs contributes to pollution and significant losses of recoverable materials.
An evaluation of the existing ELV Directive concluded that stronger rules were needed to support the EU’s circular economy objectives, prompting the Commission to propose a new Regulation in July 2023.
Next steps and wider policy context
The Regulation will enter into force 20 days after formal adoption by the European Parliament and the Council and publication in the Official Journal of the EU.
It is closely linked to several wider EU initiatives, including the Critical Raw Materials Act, the Industrial Action Plan for the European Automotive Sector, the European Steel and Metals Action Plan and the RESourceEU Communication. It also aligns with upcoming legislation such as the planned Circular Economy Act.
The agreed text defines criteria for determining when a vehicle should be classified as an end-of-life vehicle, generally when it is totally irreparable. Vehicles of historic interest remain excluded from the scope of the Regulation.
European Commission representatives said the measures would support industrial competitiveness while reducing dependence on imported raw materials. The Commission argues that keeping more materials from old vehicles within the EU economy is increasingly important as global competition for critical resources intensifies.