GIC launches automotive plastics circularity pilot

The Global Impact Coalition (GIC), a CEO-led platform originally incubated at the World Economic Forum, has launched an automotive plastics circularity pilot along with seven global companies in the chemical and recycling industries—BASF, Covestro, LyondellBasell, Mitsubishi Chemical Group, SABIC, SUEZ and Syensqo—to address the challenge of recycling plastics from end-of-life vehicles (ELVs).

According to the GIC, 800 million metric tons of ELV plastics are incinerated or landfilled each year in the European Union alone, resulting in significant environmental and economic losses. The GIC says its pilot is a first step to transform such material into valuable resources, enabling the automotive industry to significantly increase the rate of closed-loop recycled plastics.

“This collaboration represents a turning point for the industry,” says Charlie Tan, CEO of the GIC. “Recycling ELV plastics has long been a challenge, with less than 20 percent of these materials recycled today. By uniting players from across the automotive value chain—from automakers to dismantlers, sorters, recyclers and the chemical industry—we are connecting the links to close the loop on plastics.”

The GIC says its pilot will take place in the Netherlands and Germany, and will involve the dismantling, shredding and sorting of plastic fractions, clustered into 10 types of polymers and automotive parts from 100 ELVs. The sorted plastic fractions then will be recycled by the collaborating companies, with each of their specific technologies. Focusing on bulk aggregation of ELV plastics, the GIC says the pilot will serve to test and optimize a new approach to dismantling, sorting and recycling plastic fractions under real-world conditions.

To ensure success, the GIC says its project partners have engaged dismantlers, shredding companies and sorting facilities to create a robust and interconnected network. The GIC adds that by pooling demand for a wide variety of ELV polymers, the initiative seeks to demonstrate the economic feasibility of large-scale closed-loop recycling systems. Project members collectively represent a significant portion of the global plastics industry.

“Automotive sustainability hinges on addressing materials that have long been overlooked,” says Yves Rannou, co-CEO and chief operating officer of Recycling & Recovery. “Recycling ELV plastics isn’t just a technical challenge, it’s a chance to redefine how we view waste as a resource and ensure we can make it economically sustainable for each party involved. This pilot is the beginning of a transformative journey for the entire automotive and plastics value chain.”

Meeting regional sustainability mandates

The GIC says the pilot aligns with evolving regulatory frameworks, including the EU’s proposed ELV regulations, which currently mandate that by 2030, 25 percent of plastics in new cars must come from recycled materials, with 25 percent of those derived from closed-loop recycling of ELVs. The organization says the initiative aims to validate the scalability of solutions capable of achieving these targets.

By optimizing processes and achieving purer polymer fractions, the GIC says the pilot will provide actionable insights into meeting regulatory requirements. Additionally, it aims to demonstrate the potential for a scalable, sustainable business model that can be applied globally.

“The goal of this pilot is to move beyond theoretical discussions and test real-world solutions for ELV plastics recycling,” says Lars Kissau, president of BASF’s Net Zero Accelerator. “By focusing on advanced sorting and recycling technologies, we aim to prove that high-quality, closed-loop systems are not only possible but scalable for global impact.”

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The GIC says it expects the pilot to yield valuable data to guide broader industry adoption. Following its conclusion, the project will focus on scaling up efforts regionally in Europe and expanding to other key markets for ELV plastics recycling and production.

The GIC says it is inviting stakeholders across the automotive and recycling value chains to join the initiative.