The European Union has taken a decisive step towards a more sustainable automotive sector, with the European Commission welcoming a provisional agreement between the European Parliament and the Council on a new regulation covering end-of-life vehicles.
The deal marks a major overhaul of how cars are designed, produced and treated once they reach the end of their usable life, with far-reaching implications for resource efficiency, environmental protection and industrial resilience.
Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy, believes the new regulations will transform Europe’s automotive sector: “Boosting recycling and circularity is a key component of our plan to support the industrial competitiveness of the plastics industry.
“The adopted measures today will help to create a concrete business case for the recycling supply chain across Europe.
“I therefore welcome the quick finalisation of the co-decision process on the End-of-Life of Vehicles Regulation – an important step to strengthen the recycling industry in Europe.”
A growing problem for Europe’s automotive sector
The automotive industry is one of Europe’s largest consumers of raw materials, relying heavily on steel, aluminium, copper and plastics. Yet the EU continues to lose vast quantities of these valuable resources every year.
An estimated three to four million vehicles effectively ‘disappear’ annually after being deregistered, with authorities unable to trace whether they have been properly scrapped, exported or handled illegally.
This lack of transparency has serious consequences. Poorly managed end-of-life vehicles lead to pollution, lost economic value and missed opportunities to reuse critical materials.
A recent evaluation of existing EU rules concluded that the current framework falls short and that substantial reform is needed to support the transition to a circular economy within the automotive sector.
From proposal to political agreement
In response, the European Commission proposed a new End-of-Life Vehicles Regulation in July 2023. The agreement reached brings that proposal significantly closer to becoming law.
Once formally adopted, the regulation will replace outdated rules with a single, harmonised framework that applies across the EU.
The new legislation is designed to work alongside key EU strategies, including the Critical Raw Materials Act, the Industrial Action Plan for the European Automotive Sector, the European Steel and Metals Action Plan and the RESourceEU initiative.
It also anticipates future policies such as the upcoming Circular Economy Act, ensuring long-term coherence in Europe’s sustainability agenda.
Clear rules on what counts as an end-of-life vehicle
A central feature of the regulation is the introduction of clear and proportionate criteria to determine when a vehicle should be classified as an end-of-life vehicle.
In principle, totally irreparable cars will fall under the new rules, ensuring they are dismantled and treated in authorised facilities. Vehicles of historic interest, however, remain excluded and will not be affected by the regulation.
This clarity is expected to strengthen enforcement, reduce illegal exports and close loopholes that have allowed end-of-life vehicles to escape proper treatment.
Designing cars for recycling and reuse
The regulation places strong emphasis on vehicle design. Manufacturers will be required to ensure that vehicles are easier to dismantle and that components can be removed, replaced and recycled efficiently.
Detailed instructions for repair and end-of-life treatment must be made available, supporting both professional recyclers and repair markets.
For the first time in Europe, mandatory targets for recycled plastic content will be introduced. From 2036, at least 25% of plastics used in vehicles must come from recycled sources, with 20% of that share originating specifically from end-of-life vehicles.
These requirements will apply equally to cars produced in the EU and those imported from abroad, helping to create a level playing field.
Environmental gains and supply-chain resilience
The environmental and economic benefits are substantial.
The Commission estimates that the new measures could enable the recycling and reuse of hundreds of tonnes of rare earth materials each year, alongside five to six million tonnes of steel, one to two million tonnes of aluminium and up to 0.3 million tonnes of copper. At least 30% of plastics recovered from end-of-life vehicles will need to be recycled.
By keeping these materials within Europe, the regulation will reduce reliance on imports and strengthen resilience against global supply chain disruptions, while supporting a competitive and sustainable automotive industry.
What happens next
The agreement now moves to formal adoption by the European Parliament and the Council. Once published in the Official Journal of the EU, the regulation will enter into force 20 days later, ushering in a new era for the management of end-of-life vehicles across Europe.
