Key takeaway
What This Development Means
The European Parliament has adopted new rules mandating the use of recycled materials in vehicle production and strengthening producer responsibility for end-of-life vehicles. Aimed at advancing circularity and reducing environmental impact, the regulation will affect manufacturers, recyclers, and exporters across the EU’s automotive and chemicals sectors.
What are the new EU recycled material targets for vehicles?
The new regulation mandates that all new vehicle types include at least 20% recycled plastic within six years, increasing to 25% after ten years, subject to market conditions. Additional targets for recycled steel and aluminium are expected following a feasibility assessment by the European Commission.
How will extended producer responsibility affect manufacturers?
Manufacturers will be required to finance the collection and treatment of end-of-life vehicles starting three years after the regulation enters into force. This shifts compliance obligations upstream, increasing accountability while promoting sustainable design and materials use.
The European Parliament has backed new legislation requiring car manufacturers to integrate circularity principles throughout the entire vehicle lifecycle—from design to dismantling.
On 9 September 2025, MEPs voted 431 in favour, 145 against, and 76 abstaining to adopt a draft regulation aimed at slashing the environmental impact of vehicle production and disposal. The new measures will apply EU-wide, excluding special-purpose and military vehicles, and align with the European Green Deal and Circular Economy Action Plan.
A key element is the binding target for recycled plastic in new vehicles: 20% within six years and 25% within ten years of the rules entering into force, subject to market availability and cost. Further targets for recycled steel, aluminium and alloys are expected following a Commission-led feasibility study.
Redesigned For Dismantling And Reuse
The legislation requires new vehicles to be designed for easier dismantling, allowing authorised treatment facilities to efficiently remove parts and components for reuse, refurbishment, or recycling. This includes batteries, plastics, and composite parts—all of which may contain regulated chemical substances.
The European Parliament also calls for the Commission to assess chemical safety and availability of suitable recycled content, ensuring recycled materials meet health and performance standards.
Stronger Rules For End-Of-Life Vehicles
Three years after the regulation takes effect, producers will bear extended responsibility for the collection and treatment of end-of-life vehicles (ELVs), a move expected to shift compliance burdens upstream in the automotive value chain.
Export bans will apply to vehicles officially classified as ELVs, helping to curb illegal exports and improve domestic recycling rates. Clear criteria to differentiate between used and end-of-life vehicles are also mandated, aimed at preventing environmental dumping in third countries.
Industry Implications And Next Steps
With approximately 6.5 million vehicles reaching end-of-life annually in the EU, the new regulation could reshape resource flows across the recycling and waste management industries. It is expected to stimulate innovation in sustainable materials and component recovery, while also imposing new compliance obligations on automotive OEMs and importers.
Interinstitutional negotiations with the Council are set to begin imminently, paving the way for formal adoption of the regulation.
Co-rapporteurs Jens Gieseke (Environment, EPP, DE) and Paulius Saudargas (Internal Market, EPP, LT) noted the rules aim to “advance resource security, protect the environment, and ensure sustainability” without overburdening industry stakeholders.
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