Japanese automakers such as Honda and Nissan are building recycled plastic supply chains to make their cars more environmentally friendly and comply with new European regulations, Nikkei reported. Plastic is an essential material in automobile production and is used in bumpers, interior trim and other parts. Under a proposal by the European Commission for 2023, at least 25 percent of the plastic used in new cars must be recycled, and the rule will come into full effect as early as 2031, when non-compliant new cars may be banned from sale in the EU.
According to the Plastic Waste Management Institute in Tokyo, automotive parts will account for only about 3% of all plastics recycled in Japan in 2022. Japan’s automakers are under a lot of pressure to recycle plastics because sorting plastic debris after a car is scrapped is time-consuming, Nikkei.com noted.
Honda hopes to work with chemical makers and recycling companies to establish a supply chain for recycled plastics by around 2040, with plans to reduce the types of plastics used in new cars by around 60 percent to six to seven. Honda’s first mass-produced electric car reportedly used about 25 types of plastic. Honda will seek to work with Mitsubishi Chemical Group and Toray Industries to convert the collected plastics into materials suitable for automobiles. The three companies hope to develop and commercialize technologies to improve the quality of recycled plastics to a level comparable to existing products.
Nissan and Renault will also launch an initiative to recycle plastics from end-of-life electric cars for use in new vehicles assembled in Europe. Nissan is considering investing in Renault’s recycling business, but details such as the size of the investment will be finalized later.
Toyota wants recycled plastics in its new cars built in Japan and Europe to make up 30% or more of the total vehicle plastics by weight by 2030. For example, the seats in Toyota’s Land Cruiser 250 series use fabric made from plastic bottles, and for the C-HR model sold in Europe, recycled plastic is used about twice as much as in its predecessor.
Subaru aims to have recycled materials make up at least 25% of the total vehicle plastics used in new models sold globally by 2030.
However, widespread adoption of recycled plastics for automotive parts will come at a higher cost. Overall, recycled plastics can be 50 percent to three times more expensive than traditional plastics, so a significant increase in the use of recycled plastics could squeeze profits for automakers.
According to Nikkei.com, to support the recycling of plastics, the Japanese government will set up a public-private partnership as early as September this year. Coordinated by the Ministry of the Environment, the body is expected to consist of about 10 organizations, including the Japan Automobile Manufacturers Association (of which Toyota and Honda are members) and the Plastic Waste Management Institute.
Car brands such as Mercedes-Benz and BMW are also starting to use more recycled plastics as European regulations tighten. The market for recycled materials for automotive use, including plastics, is set to grow about 60 percent from 2022 levels to reach $3.9 billion by 2027, according to Indian research firm MarketsandMarkets.