Mitsubishi, BASF, Covestro, LyondellBasell, Saudi Basic, SUEZ, and Syensqo Lead Global Initiative to Revolutionize ELV Plastic Recycling

On March 4, Mitsubishi Chemical Group (MCG) announced its participation as the sole Japanese member in the Global Impact Alliance (GIC), a platform aimed at creating a low-carbon future. Launched in February 2025, the alliance has initiated a pilot project focused on establishing a supply chain for recycling end-of-life vehicle (ELV) plastics. This initiative marks the first collaboration among global companies to develop a recycling supply chain for ELV plastics in Europe, involving seven key players: Mitsubishi Chemical Group, BASF, Covestro, LyondellBasell, Saudi Basic Industries Corporation, SUEZ, and Syensqo.

As part of this pilot project, participating organizations will work together to extract plastics from 100 scrapped cars, categorizing them into ten different polymer types. Chemical manufacturers involved will then assess the feasibility of recycling these polymers based on their specific characteristics.

This initiative addresses critical challenges posed by the EU regulations concerning scrapped vehicles, which advocate that by 2030, 25% of the plastics in new cars must be derived from recycled materials, with a quarter of that coming from closed-loop recycling (from scrapped vehicles). The pilot aims to validate scalable solutions that can meet these targets and significantly reduce reliance on landfilling and incineration.

By optimizing processes and obtaining purer polymer fractions, the pilot will provide actionable insights for meeting regulatory requirements. Additionally, it will showcase the potential for scalable, sustainable business models applicable globally. Following the pilot, the goal is to create a large-scale closed-loop recycling system for various automotive plastics.

The pilot project is expected to generate valuable data that will guide broader industry adoption. Upon completion, it will focus on scaling up in Europe and expanding into other major markets for ELV plastic recycling and production.