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In the joint program initiated by German GIZ, the project partners develop value chains for materials recycled from end-of-life automotive headlamps
Case study

End-of-Life Vehicle Plastics: Advancing Circular Economy in Automotive

We've developed a pioneering ecosystem for automotive plastic recycling with value chain partners, creating post-consumer recycled (PCR) engineering plastics with 50% recycled content derived from end-of-life vehicle (ELV) headlamps – demonstrating automotive circularity solutions at scale.
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Task

Scaling Up Car-to-Car Plastic Recycling in China

With 6-7 million vehicles reaching end-of-life annually in China, establishing efficient recycling processes for automotive plastics and their reintegration into new cars has become crucial. This aligns with the automotive industry's ambitious sustainability targets, as automotive manufacturing increasingly focuses on recycled content and reduced environmental impact. Under the initiative of the German federal enterprise GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit), we partnered with leading OEMs NIO and Volkswagen, recyclers GEM and Ausell, and certification body TÜV Rheinland. Our task was to prove that ELV plastics recycling is both technically feasible and economically viable, while building robust supply chains that meet stringent quality standards for PCR plastics in cars.

Covestro collaborates with automotive partners on car-to-car plastic recycling.
Challenge

Overcoming Barriers to Automotive Circularity

The challenges in automotive plastic recycling are both technical and systemic. ELV plastics require sophisticated sorting and processing methods. While China's recycling infrastructure handles raw materials like metals effectively, plastic waste from vehicles needs more attention. Ensuring consistent quality for PCR plastics in cars while meeting strict manufacturing processes posed significant challenges. The lack of standardized collection, sorting, and production processes, combined with complex logistics, created hurdles for scaling up car-to-car plastic recycling.

By leveraging our collective strengths and resources, we are confident in our ability to build a viable closed loop for automotive plastics recycling, thereby reducing waste and carbon emissions at the source. Through this joint program, we aim to expedite the automotive industry’s transition toward a more climate-neutral and sustainable future.

Lily Wang

President of the Engineering Plastics Business Entity, Covestro

Solution

Creating a Viable Ecosystem for ELV Plastics Recycling

We developed comprehensive circular economy automotive solutions through strategic partnerships. Working with recyclers for systematic ELV plastics recycling in China, we established reliable material flows. Collaboration with automotive manufacturers helped define requirements for recycled content in automotive applications, while third-party certification validated our approach. This ecosystem has enabled us to create recycled engineering plastics with 50% PCR content that meet the high-performance standards required for demanding automotive applications. These materials offer excellent surface quality for superior aesthetics while adhering to strict Vehicle Interior Air Quality (VIAQ) requirements. This successful implementation demonstrates how innovative materials combined with strategic partnerships can accelerate automotive circularity at scale.

Covestro and Ausell collaborate on the recycling of end-of-life vehicle headlamps.
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The automotive industry stands as one of the most resource-intensive sectors globally, yet the potential of high-value plastics from ELVs remain largely untapped. I firmly believe that GIZ and our partners can forge a path towards the transition to a sustainable, circular economy.

Martin Hofmann

Cluster Head in charge of Climate, Energy, Environment and Biodiversity, GIZ

Key benefits

  • Environmental value: Reduces both plastic waste and carbon footprint through closed-loop automotive recycling
  • Quality assurance: Third-party certification ensures consistent, high-quality recycled materials
  • Supply security: Reliable local supply chain for high-quality PCR materials through strategic partnerships
  • Industry leadership: Pioneering circular solutions that help OEMs meet sustainability targets
Automotive Plastic Recycling: Driving Circular Economy

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