EU-Funded Circular Economy Pilot Project for Automotive Sector Officially Launched, LYB Participates

During ChinaPlas 2026, the "Extended Producer Responsibility for Automotive to Enhance Material Circularity" pilot project was officially launched. This project is part of the Sino-European Circular Economy Project and is led by German Federal Environment、Climate Action、Federal Ministry for the Environment, Nature Conservation and Nuclear SafetyJointly funded, and byGerman Corporation for International Cooperation (GIZ)Responsible for implementation.
At present, the recycling and reuse of plastic materials from end-of-life vehicles (ELVs) are limited due to regulatory, technical, and economic factors, and they are rarely reintroduced into the production of new cars. This collaborative pilot project aims to explore and validate aFeasible and Replicablethe "Car-to-Car" plastic recycling model. The project brings together multiple participants from the upstream and downstream of the automotive industry chain, including end-of-life vehicle dismantling companies.Yu ChengRecycling CompanyAuxerreand polymer producersLYB, and open to all automotive OEMs.

The project partners will jointly promote the recycling of polypropylene (PP) plastic from end-of-life vehicles and its reapplication in new vehicle parts. To achieve this goal, the pilot project will establish a systematic intervention plan, focusing onRationalization breakdown、Material Classification、Quality Control Planning for Specific Automotive Plastic ComponentsBy selectively disassembling PP-based material components and implementing standardized identification and quality control measures, the project aims toEnhance the stability and performance of recycled feedstock, laying a critical foundation for large-scale closed-loop recycling of automotive plastics and reducing reliance on virgin materials.In addition to technological exploration, this collaboration will promote the establishment of an effective Extended Producer Responsibility (EPR) system and support the development of a globally coordinated automotive supply chain.


For automotive OEMs, this pilot project offers a unique platform to co-create a closed-loop market for automotive plastics. By validating recycled materials that meet performance and quality requirements, the project will support sustainable vehicle design and address increasingly stringent regulatory demands, including the upcoming EU End-of-Life Vehicles regulation and China's "Action Plan on Promoting the Application of Recycled Materials."


LYB plays a core technical support role in the project, contributing its expertise in materials science, modification, and quality assurance. The company will support the mechanical recycling of PP materials and develop different recycling composition ratios, balancing performance requirements with economic feasibility for automotive-grade modified materials. Laboratory-scale testing will provide data support for application decisions and serve as a basis for discussions on relevant regulations and policies. The materials developed through this pilot project will follow an open, non-exclusivity principle, allowing interested automotive OEMs to evaluate the potential application of recycled plastics in vehicle projects, and promoting the construction of a broader automotive plastic circular economy system.

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