Description of need

Auto recyclers typically prioritize recovering metals from end-of-life vehicles, while plastic components and sub-components are often treated as waste and discarded. With increasing volumes of plastic in modern vehicles, there is a growing need for technologies and processes that enable recyclers to efficiently identify, extract, and monetize these plastic materials, enhancing overall recycling profitability and sustainability.

Problem severity (1-10)

7 – While not as critical as metal recovery, plastic waste from ELVs contributes to significant landfill volumes and represents a lost revenue opportunity. Additionally, regulatory pressures, such as the EU ELV Directive, and growing demand for recycled plastics amplify the importance of addressing this issue.

Who has this need

  • Auto recyclers and dismantlers
  • Automotive OEMs aiming to increase recycled content in vehicles
  • Plastic compounders and manufacturers seeking high-quality recycled resins
  • Policy makers and regulators promoting circular economy initiatives
  • Sustainability-conscious consumers and advocacy groups

Total addressable market (TAM)

The TAM is estimated to be in the range of $3-5 billion annually, based on:

  • The global volume of plastics in end-of-life vehicles (~20-30% of total vehicle weight, ~7 million tons annually).
  • Current market prices for recycled automotive-grade plastics ($500-1,500 per ton, depending on type and quality).
  • Increasing demand for recycled polymers in the automotive and other industries.

Solutions today, and their shortcomings

  • Landfilling or incineration: Default option for most ELV plastics; environmentally harmful and wasteful.
  • Manual dismantling: Effective for extracting some high-value components (e.g., bumpers), but labor-intensive and costly.
  • Mechanical recycling: Processes mixed plastics but often produces low-quality, contaminated output.
  • Chemical recycling: Emerging for depolymerizing plastics like PP and PET but faces cost, scalability, and purity challenges.
  • OEM take-back schemes: Limited scope and adoption, often relying on third-party processing.

Potentially relevant capabilities

  • Automated dismantling technologies for selective removal of plastic components.
  • Advanced sorting technologies for polymer identification (e.g., NIR, FTIR).
  • Chemical recycling technologies tailored to automotive plastics (e.g., depolymerization, solvolysis).
  • AI and robotics for efficient material identification and disassembly.
  • Market insights and logistics platforms to connect recyclers with buyers of recovered plastics.

Thank you ChatGPT for filling this out!

References

2024-12-10 Brian Taylor (Recycling Today)