Honda and Nissan fast-track plastics recycling to meet new EU rules

Japanese automakers, including Honda Motor Co. and Nissan Motor Co., are increasing the use of recycled plastic in cars to comply with new European regulations requiring at least 25 percent of a vehicle's plastic to be recycled, Nikkei reported Aug. 12.

Plastic makes up 50 percent of a car by volume, from dashboards to bumpers to seats and seat belts, according to the European recycling industry association. Manufacturers are adapting supply chains to incorporate materials from scrapped vehicles.

However, the higher costs of recycled plastic — ranging from 50 percent to three times more expensive than a conventional version of the material — pose a challenge. Under upcoming European Union regulations, set to take full effect by 2031, noncompliant vehicles will be barred from sale.

Honda plans to partner with chemical and recycling companies to establish a recycled plastic supply chain by around 2040 and aims to reduce the types of plastic used in new cars by 60 percent, Nikkei reported. Mitsubishi Chemical Group and Toray Industries will process the plastic for Honda, removing impurities that could affect its quality.

This recycling goal is part of Honda's Triple Zero Initiative, which focuses on carbon neutrality, clean energy and resource circulation, according to a Honda spokesperson.

Nissan is considering investing in a Renault recycling unit, but details regarding the investment are yet to be determined, Nikkei said.

Other companies introducing measures include Toyota Motor Corp., which has set a target of having recycled plastic account for 30 percent or more of that material used in new vehicles, by weight, in Japan and Europe by 2030. Subaru, Mercedes-Benz and BMW are also working on plastic recycling initiatives ahead of the European regulations.

The Japanese government will support recycling initiatives by creating a public-private entity coordinated by the Environment Ministry. The group, which will include about 10 organizations, will feature the Japan Automobile Manufacturers Association and the Plastic Waste Management Institute.