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The European Union (EU)'s Regulation 2026/1738 ‘on circularity requirements for vehicle design and on management of end-of-life vehicles', commonly referred to as the End-of-Life Vehicle Regulation (ELVR), has become law following its publication in the Official Journal of the EU on 24 July.

The regulation will come into force on 13 August. It includes recycled content mandates, design requirements for new vehicles, criteria for when a vehicle is considered an ELV, a ban on the export of ELVs and a requirement to be treated at an authorised treatment facility, a transfer of ownership framework, and a cross-border extended producer responsibility (EPR) scheme.

While the text is materially the same as that voted through by the EU Council and EU Parliament, there are some minor differences in implementation dates for recycled content targets, changes in the timetable for the review of bio-based and tyre elastomers, and a difference in the date when imports from third countries (countries that are not part of the EU) will be allowed to count towards targets.

Recycled Content Mandates

The ELVR includes mandatory recycled plastic content targets for new vehicles. These are: a minimum 15% recycled content required for each new vehicle type that is type-approved from 1 September 2032, and a minimum 25% recycled content required for each new vehicle type that is type-approved from 1 September 2032.

Vehicle Type Approval is confirmation issued by a governing authority that production samples of a vehicle or vehicle part will meet mandatory safety, environmental, and conformity standards.

At least 20% of these recycled content targets must be sourced from end-of-life vehicles (ELVs). This equates to 3% recycled content sourced from ELVs by 1 September 2032, and 5% recycled content sourced from ELVs by 1 September 2036.

Only post-consumer derived material will be allowed to count towards targets. For the purposes of the regulation, post-consumer waste is defined as “waste that is generated from products that have been placed on the market or supplied for distribution, consumption or use in a third country in the course of a commercial activity, whether in return for payment or free of charge”.

"ICIS estimates that 0.5-0.6 million tonnes of recycled plastics will be required by 2040 to meet ELVR targets. Recycled polypropylene is expected to account for around 70% of total recyclate demand, reflecting its widespread use in automotive components and the expected relative availability of suitable recycling feedstocks," ICIS plastic recycling analyst Mia McLachlan said.

Chemical Recycling

Chemical recycling will be accepted as counting towards the target using a mass-balance accounting approach. The European Commission will need to adopt an implementing act to establish calculation and verification methods for the recycled content targets (including mass balance) by 31 August 2028.

Nevertheless, while used car parts will be allowed to count towards recycled content targets, elastomers from tyres will not be allowed to contribute towards recycled content targets – at least not initially.

This is likely to concentrate any additional chemical recycling demand on plastic-derived pyrolysis oil grades in Europe.

Tyre Elastomers and Bio-Based

By 31 December 2033, the Commission will be required to publish a review of the technological development and environmental performance of bio-based plastics and elastomers from tyres and “where appropriate” present legislative proposals for sustainability requirements and targets, including the possibility of them counting towards recycled content targets.

Derogation Powers

The Commission could delay or temporarily revise down plastic content targets, “Where the lack of availability or excessive prices of specific recycled plastics makes compliance with the minimum percentages excessively difficult.” It contains no guidelines for the interpretation of “excessively difficult”.

Imports

Recycled material from a third country will not be allowed to count towards the minimum recycled content targets until 14 August 2030.

Once they are allowed to count, there will be stringent requirements – set out in Annex XIII – which will likely limit the amount of usable material from overseas. This includes that waste is sourced from “a Member State or a country which complies with Union law or equivalent standards as the Member States in terms of protection of the environment and the safety of workers” and is in line with the regulations’ reuse, recovery and extended producer responsibility (EPR) end-of-life vehicle requirements. It also includes mandatory audit requirements for material from third countries.

Mark Victory is Senior Editor, Recycling at ICIS.