Regulations Spotlight

The current European Union legal requirements relating to the recyclability and recycling of End of Life Vehicles (ELV's) are covered by two separate Directives, both of which are only applicable to M1 and N1 category vehicles (i.e. passenger cars, multipurpose passenger vehicles, pick-up trucks and vans):

• Directive 2000/53/EC, as last amended by Directive (EU) 2020/362, on End of Life Vehicles, and
   
• Directive 2005/64/EC, as last amended by Directive 2009/1/EC, on the reusability, recyclability and recoverability of motor vehicles.

Both of these Directives have recently been subject to review under the European Union’s "circular economy action plan" and "new industrial strategy for Europe" which aim to "promote more circular business models by linking design issues to end of life treatment, consider rules on mandatory recycled content for certain materials and improve recycling efficiency". As a result of this review, the European Commission has developed a completely new EU Regulation on circulatory requirements for vehicle design and on management of end of life vehicles, which will repeal and replace both of the existing Directives. A draft version of this new EU Regulation was published for public comment on the European Commission’s "Better Regulation" web site on July 14, 2023, with the reference COM(2023) 451 Final.

An important point to note regarding this draft EU Regulation is that, in parallel to developing this new Regulation, the European Commission are also developing a separate new EU Regulation on batteries which will include requirements on the sustainability, performance, safety, collection, recycling and second life use of all types of battery, including automotive batteries. Therefore, all automotive batteries will fall under the scope of the new “battery” Regulation, rather than this new draft "vehicle" Regulation.

The requirements contained within the draft Regulation on circulatory requirements for vehicle design and on management of end of life vehicles encompass all of the processes applicable throughout the whole of the vehicle’s life, from the vehicle’s design and construction through to the end of life treatment (i.e. dismantling, shredding, etc.) of individual end of life vehicles. Therefore, the draft Regulation includes requirements which are applicable to vehicle manufacturers, component suppliers, authorised treatment facilities, repair and maintenance operators, component remanufacturers and refurbishers and the Competent Authorities designated to ensure compliance with the specified requirements.

The following is a brief summary of some of the key requirements from the draft Regulation which specifically apply to vehicle manufacturers and their component suppliers:

• Whilst the initial scope of the new Regulation is aligned with that of the existing EC Directives (i.e. M1 and N1 category vehicles only), it is proposed that, from 5 years after the publication of the Regulation, the scope of the new Regulation is expanded to include M2, M3, N2 and N3 category vehicles (i.e. buses, coaches, trucks and tractor units), all O category vehicles (i.e. trailers) and certain L category vehicles (i.e. motorcycles, tricycles and quadricycles).
   
• The requirement for vehicles to be designed to be at least 85% reusable or recyclable by mass and at least 95% reusable or recoverable by mass, calculated in accordance with ISO 22628:2002, is carried over from Directive 2005/64/EC. However, the European Commission is tasked with establishing a new methodology for this calculation within 3 years of the publication of the Regulation, and it is proposed that compliance with the minimum reuse, recycling and recovery percentage rates using this new methodology will become mandatory for new types of vehicle from 6 years after the publication of the Regulation.
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• The restriction on the use of lead, mercury, cadmium and hexavalent chromium in the construction of vehicles, along with the permitted exemptions from this restriction, is carried over from Directive 2000/53/EC. However, the draft Regulation also requires compliance with the material restrictions specified within other relevant EU Regulations, e.g. (EC) 1907/2006 and (EU) 2019/1021.
   
• The requirement for all plastic and elastomer components to be marked with their material coding, in accordance with specified ISO standards, is carried over from Directive 2000/53/EC.
   
• A new labelling requirement for permanent magnet electric drive motors is proposed in the draft Regulation. Such electric drive motors would be required to be labelled with information on the number, type and material specification of any permanent magnets contained within them.
   
• From 3 years after the publication of the Regulation, for new vehicle types, the vehicle manufacturer must generate a "circularity strategy" describing the ongoing actions and procedures implemented by the manufacturer to ensure compliance with the requirements of the Regulation. This "circularity strategy" must be provided to the European Commission within 30 days after type approval for the applicable vehicle type is issued, and the European Commission will make all vehicle manufacturers' "circularity strategies" publicly available.
   
• From 6 years after the publication of the Regulation, it is proposed that, for new vehicle types, at least 25% by mass of the plastics fitted to each vehicle must be recycled from post consumer plastic waste. Furthermore, the draft Regulation specifies that at least 25% of that recycled plastic must come from end of life vehicles. The European Commission is tasked establishing a new methodology for the calculations necessary to establish compliance with these requirements within 2 years of the publication of the Regulation.
   
• The European Commission is tasked with undertaking a feasibility study into specifying a minimum percentage of recycled steel to be used in vehicle construction within 2 years of the publication of the Regulation.
   
• The European Commission is tasked with undertaking a feasibility study into specifying a minimum percentage of recycled aluminium, aluminium alloys, magnesium and magnesium alloys to be used in vehicle construction within 3 years of the publication of the Regulation.
   
• The European Commission is tasked with undertaking a feasibility study into specifying a minimum percentage of recycled neodymium, dysprosium, praseodymium, terbium, samarium or boron to be used in the manufacture of electric drive motors within 3 years of the publication of the Regulation.
   
• To assist the European Commission in undertaking the above feasibility studies, from 3 years after the publication of the Regulation, for new vehicle types, the vehicle manufacturer must provide the Type Approval Authority with a declaration on the percentage of recycled steel, aluminium, aluminium alloy, magnesium, magnesium alloy, neodymium, dysprosium, praseodymium, terbium, samarium and boron used in the vehicle’s construction.
   
• From 3 years after publication of the Regulation, vehicle manufacturers must provide waste management operators and repair and maintenance operators with unrestricted, free of charge access to information to allow for the safe removal and replacement of key vehicle components e.g. electric vehicle battery, electric drive motor, internal combustion engine, gearbox, catalytic converters, wiring harnesses, glazing, etc.
   
• From 6 years after publication of the Regulation, it is proposed that all new vehicle types must be designed to allow the damage free removal and replacement of electric vehicle batteries and electric drive motors by authorised treatment facilities or by repair and maintenance operators during the vehicle’s useful life and during the waste phase of the end of life vehicle treatment process.
   
• From 6 years after publication of the Regulation, it is proposed that all new vehicle types must be designed to allow for the removal of key vehicle components, e.g. internal combustion engine, gearbox, catalytic converters, wiring harnesses, glazing, etc., from the vehicle by authorised treatment facilities during the waste phase of the end of life vehicle treatment process.
   
• From 7 years after the publication of the Regulation, it is proposed that the vehicle manufacturer must generate a "circularity vehicle passport" for each individual vehicle containing information to allow for the safe removal and replacement of key vehicle components e.g. electric vehicle battery, electric drive motor, internal combustion engine, gearbox, catalytic converters, wiring harnesses, glazing, etc. This "circulatory vehicle passport" must be in a digital format and be accessible free of charge.