New EU circular economy rules for the automotive industry

The IMDS

The EU has agreed on a new regulatory framework that will integrate the automotive industry more deeply into the circular economy. For manufacturers, suppliers, and recycling companies, this means: it’s time to rethink processes.

Key points of the new requirements:

  • Mandatory recycling quotas: Higher shares of recycled materials such as steel, aluminum, and plastics in production.
  • Design for disassembly: Vehicles must be designed so that components can be easily removed and reused.
  • Encouragement of repair and reuse:Spare parts should remain available to extend the lifespan of vehicles.
  • Transparency obligations: Manufacturers must provide information on recyclability – also relevant for the supply chain.

What does this mean for the industry?

  • Product development: Design and material selection must be more aligned with circular principles.
  • Supply chain: Collaboration with recycling companies and spare parts providers becomes increasingly important.
  • Compliance & reporting: New documentation requirements demand clear processes and digital solutions.

The provisional agreement now needs to be approved by both the Parliament and the Council before the new regulations can enter into force.

Here’s the link to the EU Parliament press release.

👉 How well are your processes prepared for these new requirements?

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