"If we continue as is, we won't be able to sell cars in Europe"... Plastic recycling rate jumps from 4% to 15% — an urgent issue

The complete vehicle industry is facing a situation where it must apply recycled materials to nearly all automotive plastic parts within the next six years.

According to relevant industry sources on the 12th, the average plastic recycling rate of vehicles launched by Hyundai Motor Group stands at about 4%. The vehicle with the highest recycling rate is Kia's EV4, at approximately 4.5%. In addition, Hyundai Motor Group recovers about 200,000 tons of resources annually from end-of-life vehicles, including steel, non-ferrous metals, and plastics.

The market environment for end-of-life vehicle Lisa Recycling (recycling) is becoming increasingly challenging. This is because global regulations are tightening, with the EU (European Union) implementing the ELVR (End-of-Life Vehicle Regulation) starting this month. According to ELVR, from September 2032, new vehicles must incorporate at least 15% recycled plastic. Of this, a minimum of 20% must be material recycled from plastics recovered from end-of-life vehicles. If the current plastic recycling rate of around 4% cannot be raised to 15%, it may become difficult to sell cars in overseas markets. The key challenge lies in increasing the proportion of recycled materials while satisfying performance, price, and volume requirements for automobiles.

Hong Seong-jun, Hyundai Motor Group Carbon Neutrality Gi Sul-hyeok-sin (Team Lead), explained, "To meet ELVR requirements, recycled materials must be applied to most of the approximately 150 to 200 visible parts," adding, "It is a task that must be overcome through collaboration with the petrochemical industry."

The government and the complete vehicle industry, including Hyundai Motor, plan to respond to market changes centered on the "Car to Car" project, which involves reapplying materials developed from recycled end-of-life vehicle parts to new vehicles. While the recycling ecosystem remains underdeveloped, a bigger variable is cost. The GIC (Global Impact Consortium), which includes global chemical companies such as BASF, LG Chem, Mitsubishi Chemical, and SABIC, conducted an automotive recycling project over the past year and found that more than 75% cost reduction compared to current levels is required.

Charlie Tan, CEO of GIC, emphasized, "As industrial efficiency improves and processing volumes increase, costs will naturally decrease," and added, "Korea, a powerhouse in automobile manufacturing, must also find practical methods to recover more high-value-added materials from end-of-life vehicles."

Recycled materials used in Hyundai Motor vehicles have already reached "visible areas." The scope of application has expanded from exterior paints to interior finishing materials, and the number of parts under review for Yangsan application after development completion is increasing. Hyundai Motor's plastic recycling rate is reported to be around 4%, which is higher than the European average (approximately 2–3%). Nevertheless, it still falls short of the European ELVR (End-of-Life Vehicle Regulation) standard of 15% that will apply to new vehicles from 2032, leaving a long road ahead.

Hyundai Motor first widely utilizes paint containing pigments extracted from waste tires. Initially applied to the "Ioniq 5 N," it is now also used in exterior parts such as the bumper lower cover of the "Ioniq 6." For Genesis models including the "GV60" and "Electrified GV70·G80," recycled materials are used in interior components such as headliners (ceiling materials), pillar trims, sun visors, and package trays.

The immediate challenge is to meet both recycling rates and safety regulations. While the use of recycled materials is restricted for safety-related parts such as airbags and seatbelts, higher content standards are required for other components. Choi Min-ho, a senior researcher at Hyundai Motor Group's Exterior and Closure Materials Development Team, explained, "Except for parts directly related to safety, there is a situation where the proportion of recycled materials in other components must be significantly increased."

Large-sized parts are ideal for boosting recycling content. Even with the same percentage, heavier parts have a greater effect on raising the overall recycling ratio per vehicle. This is why development is concentrated on PP (polypropylene) used in bumpers and door trims, PET (polyethylene terephthalate) used in interior textiles like headliners, and PA (polyamide) used in parts that must withstand heat.

There are two approaches to Lisa Recycling (recycling): mechanical recycling, which crushes waste plastic into small pieces, melts it, and molds it back into parts; and chemical recycling, which uses chemical reactions to return materials to the level of raw oil extracted from petroleum. Hong Seong-jun of Hyundai Motor Group Carbon Neutrality Gi Sul-hyeok-sin (Team Lead) emphasized, "Chemical recycling is currently difficult for Yangsan application, and mechanical recycling is now the main approach."

The more recycled materials are used, the more physical properties deteriorate. This means technology must fill the gap. Automobiles require performance levels comparable to new materials in terms of color, transparency, scratch resistance, and flame retardancy. The industry is focusing on how to improve the declining physical properties as recycling content increases. Hyundai Motor's adoption of an open collaboration model that does not bind it to specific companies and its operation of regular technical exchange meetings with domestic and international petrochemical firms aim to reduce physical property deviations in recycled raw materials.

Development of parts with higher proportions of recycled raw materials continues. A fender side cover using 50% recycled raw material from end-of-life vehicles and a fender insulator with over 30% content achieved by adding household waste to end-of-life vehicle parts are in the development stage. Development of the FEM (Front End Module) carrier and dash insulator, which blocks noise, has been completed. The timing for these parts to be actually installed in vehicles will vary depending on new vehicle development schedules, material costs, and supply conditions.

Where recycled raw materials come from is also critical. Hyundai Motor is promoting the "Car to Car" project, which reuses materials recovered from end-of-life vehicles in new vehicles. The goal is to create a closed-loop cycle by targeting five key areas: plastics, steel, aluminum, and core electric vehicle components such as batteries and motors. The company is reviewing a medium-to-long-term roadmap for gradually increasing the use of recycled raw materials and is also preparing a system for material tracking and management.

Although initiated to respond to regulations, overseas brands are leveraging this as a selling point. Volvo's "EX30" has publicly disclosed that approximately 25% of aluminum and 17% of plastic are made from recycled materials, while MINI's "Countryman" finished its dashboard surface with 100% recycled polyester fabric. This is based on the judgment that preference for recycled materials is becoming a purchasing criterion in advanced markets such as Europe.