The Global Impact Coalition (GIC), a CEO-led collaborative platform incubated at the World Economic Forum, has launched the world’s first Automotive Plastics Circularity pilot in partnership with seven global leaders from the chemical and recycling industries: BASF, Covestro, LyondellBasell, Mitsubishi Chemical Group, SABIC, SUEZ, and Syensqo. This pioneering initiative aims to tackle the critical challenge of recycling plastics from End-of-Life Vehicles (ELVs) and promote circularity in the automotive sector.
Each year, over 800 million metric tons of ELV plastics in the EU are incinerated or landfilled, resulting in significant environmental and economic losses. The pilot, taking place in the Netherlands and Germany, will test methods to transform this waste into valuable resources, supporting the automotive industry’s shift toward closed-loop recycled plastics.
The project will dismantle, shred, and sort plastic fractions from 100 end-of-life vehicles, grouping them into 10 types of polymers and automotive parts. Partner companies will recycle these fractions using their specific technologies to test and optimize real-world recycling processes. The initiative aims to address challenges such as high manual processing costs and inefficient sorting methods.
To drive success, GIC has formed a network of dismantlers, shredding companies, and sorting facilities, pooling demand for various ELV polymers to demonstrate the economic feasibility of large-scale closed-loop recycling. According to Yves Rannou, Co-CEO of SUEZ, the project redefines waste as a resource, highlighting both technical and economic sustainability.
The pilot aligns with the EU’s proposed ELV regulations, which mandate that by 2030, 25% of plastics in new cars must come from recycled materials, with 25% of that sourced from ELVs. The project aims to validate solutions capable of meeting these regulatory targets and reducing reliance on landfilling and incineration.
Charlie Tan, CEO of GIC, emphasized that recycling ELV plastics has been a long-standing challenge, with less than 20% currently recycled. This pilot aims to bridge gaps by uniting key players across the automotive and chemical industries to close the loop on plastics.
Dr. Lars Kissau, President of the Net Zero Accelerator at BASF, stated that the project moves beyond theory to real-world testing of advanced sorting and recycling technologies, proving that closed-loop systems are scalable for global impact.
Fiona Van Den Brink, Senior Director at LyondellBasell, added that this initiative demonstrates how industry-wide collaboration can drive solutions benefiting both stakeholders and the environment.
Following the pilot, GIC plans to scale up the initiative across Europe and expand to other key global markets for ELV plastics recycling. Stakeholders across the automotive and recycling industries are invited to participate in this transformative effort.
EV WORLD | Ceredigion Launches Welsh Funded EV Charging Point Trials
