BASF, SUEZ, Covestro: What Happens to Plastic Vehicle Waste?
It’s estimated that less than 10% of plastic ever produced has been recycled, so significant improvements in plastic waste management are crucial to achieving true circularity.
The Global Impact Coalition (GIC), a CEO-led collaborative platform, has launched the world’s first Automotive Plastics Circularity pilot in partnership with seven global leaders in the chemical and recycling industries.
BASF, Covestro, LyondellBasell, Mitsubishi Chemical Group, SABIC, SUEZ and Syensqo are amongst the global leaders ready to tackle plastic circularity.
Transforming the chemical value chain
Chemicals form the foundation of nearly everything we use, with more than 95% of all manufactured goods involving chemical products.
The industry’s environmental impact is substantial, accounting for 6% of global GHG emissions from energy use and direct operations.
Achieving net zero emissions and a circular future requires systemic transformation and cross-industry collaboration.
The GIC, originally incubated at the World Economic Forum, is hoping to make an impact.
As a CEO-led platform, GIC fosters partnerships between leading chemical companies to co-create innovative business models, proof-of-concept pilots and research and development hubs – aimed at accelerating the transition toward low carbon and circular solutions.
Advancing a circular economy
This circularity pilot is set to tackle the long-standing challenge of recycling plastics from End-of-Life Vehicles (ELVs), a critical issue in advancing circularity in the automotive sector.
More than 800 million tonnes of ELV plastics are incinerated or landfilled annually in the EU alone, leading to significant environmental and economic losses.
This pilot is an important step in converting this waste into high-value recycled materials, supporting the automotive industry’s move towards closed-loop plastic recycling.
“This collaboration represents a turning point for the industry,” says Charlie Tan, CEO of the Global Impact Coalition.
“Recycling ELV plastics has long been a challenge, with less than 20% of these materials recycled today.
“By uniting players from across the automotive value chain—from auto makers to dismantlers, sorters, recyclers and the chemical industry—we are connecting the links to close the loop on plastics.”
The pilot, being conducted in the Netherlands and Germany, will dismantle, shred and sort plastic components from 100 end-of-life vehicles, categorising them into 10 types of polymers and automotive parts.
These sorted plastic fractions will then be processed using advanced recycling technologies developed by the participating companies.
To ensure success, dismantlers, shredding companies and sorting facilities have been actively engaged, creating a robust and interconnected network for scaling ELV plastics recycling.
“Automotive sustainability hinges on addressing materials that have long been overlooked,” explains Yves Rannou, Co-CEO of SUEZ & Chief Operating Officer of Recycling & Recovery.
“Recycling ELV plastics isn’t just a technical challenge—it’s a chance to redefine how we view waste as a resource and ensure we can make it economically sustainable for each party involved. This pilot is the beginning of a transformative journey for the entire automotive and plastics value chain.”
Meeting sustainability mandates
The Automotive Plastics Circularity project aligns with evolving regulatory frameworks, including the EU’s proposed ELV regulations.
The proposed ELV regulations mandate that by 2030, 25% of plastics in new cars must come from recycled materials – with 25% of those derived from closed-loop recycling from ELVs.
This pilot will assess the feasibility of meeting these targets, helping to reduce reliance on landfilling and incineration.
By refining sorting and processing techniques, the initiative will generate insights into achieving purer polymer fractions, which will be instrumental in regulatory compliance.
Dr. Lars Kissau, President, Net Zero Accelerator at BASF, says: “The goal of this pilot is to move beyond theoretical discussions and test real-world solutions for ELV plastics recycling.
“By focusing on advanced sorting and recycling technologies, we aim to prove that high-quality, closed-loop systems are not only possible but scalable for global impact.”
Following its completion, GIC and its partners will focus on scaling the initiative across Europe and expanding efforts to other key regions, reinforcing the push for a sustainable automotive plastics recycling ecosystem.
The Global Impact Coalition welcomes stakeholders across the automotive, chemical and recycling industries to join this transformative initiative and drive collective action towards a circular and sustainable future.
Explore the latest edition of Sustainability Magazine and be part of the conversation at our global conference series, Sustainability LIVE.
Discover all our upcoming events and secure your tickets today.
Sustainability Magazine is a BizClik brand
