Honda Motor and Nissan Motor are among the Japanese automakers building supply chains for recycled plastic, Nikkei has learned, to make their vehicles greener and comply with expected new European regulations.
Plastic is an essential material in automobile production, used in bumpers, interior components and other parts. Under a 2023 proposal by the European Commission, at least 25% of a new vehicle’s plastic would have to be recycled plastic. This regulation would take full effect as early as 2031, raising the specter of noncompliant new vehicles being barred from sale in the European Union.
Auto parts constituted only about 3% of all the plastic recycled into new plastic products in 2022 data for Japan from the Tokyo-based Plastic Waste Management Institute. Automakers in Japan are hard-pressed to recycle plastics, given the time-consuming process of sorting plastic pieces after vehicles are scrapped.
Honda aims to partner with chemical manufacturers and recycling companies to create a supply chain for recycled plastic by around 2040. Plans call for decreasing the types of plastic used in new cars by around 60% to six or seven, facilitating the sorting process at recycling stations. Honda’s first mass-produced electric vehicle, the Honda e, used around 25 types of plastic.
Honda will enlist the help of Mitsubishi Chemical Group and Toray Industries to turn the plastic that has been collected into materials suitable for use in autos, since impurities could affect the strength. The partners hope to develop and commercialize technologies for improving the quality of recycled plastic to a level on par with that of existing products.
Others in the auto industry are also looking to use recycled plastic. Nissan and partner Renault will launch an initiative to recycle plastic from scrapped electric vehicles for use in new autos assembled in Europe. Nissan will consider investing in a Renault recycling unit, with such details as the size of the investment to be ironed out later.
Toyota Motor has set a target of having recycled plastic account for 30% or more of the plastic used in new vehicles made in Japan and Europe, by weight, by 2030.
Toyota’s Land Cruiser 250 series of sport utility vehicles feature seats with fabric made from plastic bottles collected in-house by that automaker. And for the C-HR small SUV sold in Europe, Toyota roughly doubled the use of recycled plastic compared with its predecessor.
Subaru aims to have recycled materials be at least 25% of the plastic used in new in-house models sold worldwide by 2030.
Higher costs are an obstacle to widespread adoption of recycled plastic auto parts. In general, recycled plastic is said to be between 50% more expensive to triple the cost of conventional plastic. A sharp increase in the use of recycled plastic could squeeze earnings at automakers.
The Japanese government will support the effort by launching a public-private entity as early as September. With the Environment Ministry acting as coordinator, this group is expected to comprise 10 or so organizations, including the Japan Automobile Manufacturers Association — of which Toyota and Honda are members — and the Plastic Waste Management Institute.
Members of this new entity will cooperate on aspects such as the supply of recycled plastic. The ministry will consider providing necessary investment.
Amid the expected tightening of regulations in Europe, such auto brands as Mercedes-Benz and BMW are also moving to use more recycled plastic. The market for recycled materials for autos, including plastic, will grow about 60% from the 2022 level to $3.9 billion in 2027, data from India-based research company MarketsandMarkets shows.