EU Parliament Approves Vehicle Circularity Rules Covering Design, Recycling and End-of-Life Management

The European Parliament has given final approval to a new regulation aimed at increasing circularity across the automotive sector, introducing requirements that cover vehicle design, recycled material use, ownership transfers and end-of-life treatment.

The legislation, adopted with 437 votes in favor, 112 against and 20 abstentions, forms part of the European Union’s broader circular economy agenda. The rules are designed to improve resource efficiency, increase the use of recycled materials and strengthen oversight of end-of-life vehicles (ELVs) throughout the bloc.

The regulation applies to a vehicle’s entire lifecycle. Manufacturers will be required to design new vehicles in ways that facilitate the removal and recovery of parts and materials when vehicles reach the end of their useful life. The measures are expected to affect automakers, dismantlers, recyclers and material suppliers across Europe.

A central element of the regulation is the introduction of mandatory recycled plastic content. Within six years of implementation, plastics used in each new vehicle type must contain at least 15% recycled content. That threshold will increase to 25% after ten years. Of the recycled plastic used, a minimum of 20% must originate from end-of-life vehicles or used automotive parts, creating a closed-loop recycling requirement within the sector

The European Commission will also have the authority to assess future targets for additional recycled materials, including steel, aluminum, magnesium and critical raw materials, based on feasibility studies.

The legislation introduces new requirements for the transfer of used vehicles within the EU. Businesses selling used vehicles will generally need to provide proof that a vehicle is not classified as an end-of-life vehicle or present a valid roadworthiness certificate. Private transactions will face fewer obligations, with documentation required only in specific cases such as total-loss vehicles or sales conducted exclusively through online platforms.

The regulation also expands producer responsibility. Three years after the rules enter into force, vehicle manufacturers will be required to cover the costs associated with the collection and treatment of end-of-life vehicles throughout the European Union. The measure is intended to strengthen recycling systems while ensuring that end-of-life management costs are incorporated into product responsibility frameworks.

Export controls will also tighten. To address illegal dismantling and the issue of so-called “missing vehicles,” the regulation prohibits the export of vehicles deemed non-roadworthy. The export restriction will take effect five years after the regulation enters into force.

According to Parliament co-rapporteurs Jens Gieseke and Paulius Saudargas, the legislation seeks to balance sustainability objectives with industry competitiveness by introducing achievable targets while limiting unnecessary administrative burdens.

The new rules arrive as Europe seeks to secure greater access to secondary raw materials and reduce dependence on primary resource extraction. Automotive recycling is increasingly viewed as an important source of recycled plastics, metals and critical materials needed for industrial manufacturing and electrification.

The regulation now requires formal approval by the Council before publication and entry into force. Once adopted, the rules will begin applying 24 months later.

In 2023, the European Union manufactured 14.8 million motor vehicles and registered 12.4 million new vehicles. Approximately 6.5 million vehicles reach end-of-life status across the bloc each year, highlighting the scale of material recovery opportunities within the sector.

Source: European Parliament

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