Strengthening Europe’s automotive industry for the long term with circular economy: that is the goal of the new EU End-of-Life Vehicles (ELV) Regulation, unanimously supported by the EU Member States at today’s Environment Council meeting in Luxembourg. The ELV Regulation is intended to ensure more sustainable vehicle management along the entire value chain throughout the EU and to make the EU less dependent on raw material imports.
Federal Environment Minister Carsten Schneider remarked: “At a time when global supply chains are becoming more and more fragile, today we are taking an important step towards raw materials independence. The new EU rules secure the supply of key raw materials for the German automotive industry, ensuring it remains competitive on international markets. Private consumers benefit too, as spare parts will be more readily available and repairs cheaper."
The Regulation sets new eco-design standards for vehicles. For instance, it introduces minimum content targets for recycled plastics and, over time, for recycled steel and other critical raw materials such as permanent magnets in e-drive motors, thus strengthening their circularity. The regulation also requires batteries and e-drive motors to be removable and replaceable. To strengthen circularity in the sector as a whole, after a five-year transition period these provisions for cars will apply to motor cycles, lorries and buses as well.
The regulation also improves the quality of ELV recovery by stipulating the removal and recycling of vehicle components such as wire harnesses, bumpers and fuel tanks. Consequently, it will be easier to obtain used spare parts, making car repairs cheaper for consumers, and bolstering the market for certified used parts.
To discourage illegal scrapping of ELVs, approved recyclers will be supported. Digital measures such as the electronic certificate of destruction and the digital vehicle circularity passport will enhance transparency and reduce red tape. Another new provision is the ban on exporting vehicles without a valid certificate of roadworthiness.
The goal is to bring the negotiations on the new regulation to a swift conclusion. The Danish Council Presidency is aiming for agreement with the European Parliament and the Commission by the end of 2025.