EU Introduces New Rules to Make Automotive Sector More Circular

The European Union's new End-of-Life Vehicles (ELV) Regulation enters into force on 13 August 2026, establishing a new framework to make the automotive sector more circular and resource-efficient. The regulation covers the vehicle lifecycle from design and production through collection, dismantling, reuse, recycling and final treatment, with the aim of keeping valuable materials in Europe's economy for longer.

A key requirement is the introduction of mandatory recycled plastic content in new vehicles, with manufacturers required to reach 15% recycled plastic content from 2032 and 25% from 2036. The European Commission will also establish recycled-content targets for steel and aluminium, which are expected to apply from 2033. These measures are intended to create greater demand for secondary raw materials and encourage investment in recycling infrastructure.

The regulation also strengthens the recovery of valuable and critical materials from end-of-life vehicles. Requirements will promote higher-quality recovery of steel, aluminium, copper and rare earth elements, allowing these materials to re-enter the European circular economy and reducing dependence on imported virgin resources. Improved dismantling information and digital traceability will further help recyclers recover components and materials more efficiently.

Another major change is stronger Extended Producer Responsibility (EPR). Vehicle producers will be required to contribute to the costs of collecting and treating end-of-life vehicles and cooperate with waste-management operators. The framework also introduces stronger traceability and enforcement measures, including electronic certificates of destruction and information exchange between national authorities.

The regulation also addresses the export of used vehicles. From mid-2031, only roadworthy vehicles will be permitted to be exported outside the EU, helping prevent end-of-life vehicles from being exported as second-hand vehicles and shifting environmental impacts to countries with potentially weaker waste-management systems.

Although the regulation enters into force in August 2026, its main requirements will apply from 1 September 2028, giving manufacturers, recyclers and Member States time to prepare for the new framework. The measures mark a significant step towards a more circular automotive value chain while supporting Europe's resource security, critical-material recovery and broader industrial resilience.

Automotive circularity rules reshape battery, materials and design decisions across EV supply chains, and they intersect with EU Battery Regulation, EUDR and CSDDD. Our circular-economy and supply-chain-and-operations teams help automakers and their supply-chain partners evaluate what these frameworks mean for supply-chain positioning.