Guidelines for Recycled Materials in IMDS: Part 1 – Recycled Materials and the Circular Economy in the Automotive Industry

Key Points

Recycled materials (post-industrial, PIR, and post-consumer, PCR) reduce raw material use and CO₂ emissions, supporting sustainability in the automotive industry.
The circular economy focuses on circular design, component regeneration, and recycling, minimizing waste and promoting climate neutrality.
The EU End-of-Life Vehicles Directive (ELV) and the goal of 25% recycled plastic in vehicles by 2030 (European Commission) drive industry transformation.
Stellantis recycled 2 million parts in 2023, while BMW Group aims for 100% recyclable vehicles in its future vision.

Introduction

The automotive industry is moving toward sustainability, with the circular economy at its core. Recycled materials, or recyclates, from post-industrial (PIR) or post-consumer (PCR) waste, are key to reducing waste and CO₂ emissions. According to the World Economic Forum , the circular economy involves designing vehicles for reuse, repair, regeneration, and recycling, extending their lifespan, and promoting business models like leasing or car-sharing. Companies like Stellantis and Volkswagen Group lead by using recyclates and closing material loops, such as battery recycling.

In this first part, we take a closer look at how recyclates and the principles of the circular economy are shaping automotive industry practices, setting the stage for a deeper dive into IMDS reporting guidelines in Part 2. The terminology used throughout aligns with industry standards and the International Material Data System (IMDS), as defined in IMDS Recommendation 025, ensuring consistency and continuity with the forthcoming continuation.

Why Are Recyclates Important?

Recyclates are materials recovered from waste, divided into:

Post-industrial (PIR): Waste from manufacturing processes, such as plastic scraps, excluding materials reused in the same process.
Post-consumer (PCR): Waste from end-users, such as PET bottles, no longer suitable for their original purpose.

Why Recyclates Matter in the Automotive Industry:

Environmental Benefits: They reduce raw material extraction, lower greenhouse gas emissions (recycling plastic can cut emissions by 25% by 2040, Toyota North America), and minimize waste, supporting sustainable development.
Regulatory Compliance: They help meet the requirements of the EU End-of-Life Vehicles Directive (ELV), which mandates that 95% of a vehicle’s mass must be reused or recycled, and the EU’s target of 25% recycled plastic in vehicles by 2030, with 25% sourced from end-of-life vehicles.
Circular Economy: By reusing materials from old vehicles, recyclates help make new parts and reduce the need for fresh raw materials. Volkswagen Group shows how this works by using recycled materials in seats and other interior parts of their ID. models.

The Circular Economy in the Automotive Industry

Instead of using materials once and throwing them away, the circular economy keeps them in use for as long as possible — by reusing, repairing, or recycling. In the automotive industry, this idea follows several important principles, which I found outlined by the World Economic Forum:

Circular Design: Modern vehicle design focuses on disassembly-friendly architecture, material reduction, and the integration of recyclates and renewable resources. Toyota, for example, optimizes vehicle layouts to facilitate easier component dismantling and material recovery.
Component Regeneration: Repair and remanufacturing processes help extend the operational life of critical components, such as high-voltage batteries and engines. Volkswagen Group focuses on battery regeneration technologies to minimize the extraction of new materials and support a circular value chain.
Material Recycling: Plastics, metals, and batteries from old vehicles don’t go to waste — they’re given a second life. In 2023, Stellantis recycled over 2 million parts, showing how large-scale recycling works in practice.
Innovative Business Models: Leasing, car-sharing, and selling refurbished parts help reduce waste and make better use of what we already have. The World Economic Forum highlights these strategies as essential to building a more circular automotive industry.
Recycling Innovations: New technologies like chemical recycling and rare earth recovery make it easier to reuse high-value materials. BMW is already using recycled aluminum and steel and wants to make its cars 100% recyclable.

Benefits of the Circular Economy:

Emission Reduction: The World Economic Forum estimates that circular economy practices could save 630 million tons of CO₂ annually by 2050, supporting climate neutrality.
Waste Minimization: In 2023, 40 million vehicles reached the end of their lifecycle, generating over 1 million tons of plastic waste in Europe. Recyclates and circular practices transform this waste into new components.
Resource Efficiency: Closing material loops reduces reliance on primary raw materials, building supply chain resilience amid global challenges like climate change.
Innovation and Competitiveness: Manufacturers like Stellantis and BMW gain a competitive edge by investing in circular technologies and business models, meeting consumer and regulatory expectations.

Trends in the Automotive Industry

The automotive industry is undergoing a transformation toward the circular economy, driven by regulations, consumer expectations and the need to reduce environmental impact. In 2023, 94 million vehicles were produced globally, with around 40 million reaching the end of their lifecycle, generating over 1 million tons of plastic waste in Europe. Recyclates and circular approaches are critical to addressing this issue and reducing dependence on primary raw materials.

Key Trends Supporting the Circular Economy:

Increased Use of Recyclates: Renault incorporates 30% recycled materials in models like the Megane II, Ford Motor Company uses Repreve made from PET bottles, Hyundai Korea Motors PGD uses 32 recycled PET bottles per Ioniq 5 for interiors, targeting 20% recycled materials by 2030, and Volkswagen applies recyclates in upholstery and components of ID. models.
Innovations in Materials and Recycling: BMW Group uses secondary aluminum and steel in its vehicles, targeting 100% recyclability through its i Vision Circular concept. Stellantis operates the SUSTAINera Circular Economy Hub in Turin, focusing on EV battery recycling and part regeneration.
Regulations Driving Circularity: Proposed EU targets, such as 20% recycled plastic plus 5% circular plastic, increase pressure on manufacturers. Volkswagen Group prepares for these by integrating recyclates and circular design.
New Business Models: Leasing, car-sharing, and refurbished parts, supported by manufacturers like Volkswagen, reduce demand for new vehicles.
Closing Material Loops: Stellantis achieved 15.2% coverage of aftermarket needs with sustainable parts in 2023, while General Motors (GM) diverted 94.6% of operational waste from landfills (GM 2023 Sustainability Report).

Challenges in Achieving a Circular Economy:

Recyclate Quality: Ensuring PCR materials meet OEMs’ high quality and performance standards.
Recycling Infrastructure: According to Plastics Europe Deutschland the limited availability of recycling facilities, particularly for plastic from end-of-life vehicles, hinders progress.
Design Standardization: Designing vehicles for easy disassembly and recycling requires collaboration between OEMs and suppliers.

🤝Help Me Prepare Part 2!

To help me prepare Part 2, focused on IMDS reporting guidelines for recycled materials, I’d appreciate your comments:

Are you familiar with the recyclate-specific fields and functions in IMDS and Recommendation 025?
How does your company use IMDS to track recyclates and support circular economy goals?
Does the recyclate information in IMDS make sense, can you validate its correctness?
Is reporting recycled content a formal requirement in your company or from your customers?