EU Introduces New Rules to Make Automotive Sector More Circular

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.