EU Moves Toward Stronger Rules for End of Life Vehicles in Drive for Circular Automotive Economy

The European Union (EU) is set to introduce significantly strengthened rules governing how vehicles are designed, built and dismantled after negotiators from the European Parliament and the Council reached a provisional agreement on a new End of life Vehicles (ELV) Regulation.

The initiative targets one of Europe’s most resource intensive sectors. With the automotive industry consuming vast quantities of steel, aluminium, copper and plastics, EU lawmakers aim to ensure that more of these materials remain in circulation within the bloc. Improved collection, dismantling and processing standards are expected to boost recovery rates and reduce reliance on imported raw materials.

According to the Commission, the new framework could enable the recycling and reuse of substantial volumes of critical materials each year, including rare earth elements and millions of tonnes of metals—supporting both climate objectives and industrial resilience.

Key Policy Measures

The proposed regulation introduces several notable requirements:

Design for dismantling: Future vehicles must be engineered so components can be removed more easily, supported by detailed manufacturer instructions for both maintenance and end of life handling.

Mandatory recycled plastic content: From 2036, at least a quarter of all plastics used in vehicles must come from recycled sources, with 20% specifically derived from end of life vehicles. This marks the EU’s first mandatory threshold for recycled plastic use in the automotive sector.

Higher treatment standards: At least 30% of plastics recovered from end of life vehicles must be recycled to a high quality.

Promotion of reuse and refurbishment: Measures aim to expand the supply of affordable second-hand spare parts by encouraging remanufacturing and repair.

Stronger producer responsibility: Harmonised Extended Producer Responsibility schemes will standardise how manufacturers finance end of life vehicle treatment.

Tighter enforcement: Authorities will increase inspections and ensure only roadworthy vehicles may be exported, preventing the improper disposal of vehicles outside the EU.

Next Steps

Once formally adopted by the Parliament and Council, the regulation will take effect 20 days after its publication in the EU’s Official Journal.

The initiative follows longstanding concerns about millions of untracked vehicles disappearing from EU records each year, reflecting gaps in the current system. It also aligns with broader EU strategies on raw materials, industrial competitiveness and the transition to a circular economy.