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The automotive industry is the EU’s second biggest steel consumer – yet only a tiny amount, just 6%, of steel used in cars comes from scrap. That’s compared to a European average of 56% across all sectors.
Why so little recycling? When old vehicles are shredded, their 800 kg of high-grade steel is downcycled as it gets mixed with lower-quality materials – especially with copper – making it unsuitable for recycling into new cars. It’s like throwing your white laundry in with colours and expecting them not to bleed into the whites.
In the coming weeks, EU lawmakers will vote on the revision of the End-of-Life Vehicles (ELV) Regulation, a crucial opportunity to drive circularity in the automotive sector. Yet as the crucial vote nears, the EU is on track to squander its best chance to finally close the loop on automotive steel.
Recycled steel targets are needed to unlock the market
The fix is well known: remove copper-rich parts – like wire harnesses – before shredding and treat any residue after shredding. This keeps the steel clean enough to recycle back into cars. But, in practice, it costs more. And without a guaranteed market for this cleaner scrap, recyclers won’t invest in new processes and technologies to produce higher quality recycled steel for the automotive industry.
This is exactly where EU policymakers must step in. Despite the Commission failing to set targets in the draft law, EU policymakers can decide to introduce mandatory recycled content targets for steel in new cars. A target of 30% by 2030, as shown in a study by the Öko-Institut for T&E, would create the demand certainty needed to make investments in better dismantling and recycling worthwhile. That same study shows that recyclers would also benefit from reselling the recovered copper – a valuable material on its own – making these extra steps profitable.
To ensure this supports European recyclers, local content requirements should be introduced. Without them, recycled content targets could simply drive up imports rather than strengthening the EU’s own recycling industry.
Such targets would also strengthen the EU’s resilience by reducing its dependence on iron imports for primary steel production – replacing them with EU-generated scrap. Today, 20% of all steel scrap produced in the EU is exported to third countries despite being cheaper than primary steel. So, why not make the most of this valuable resource at home?
Quality standards would complement the targets
Targets alone are not enough. If we want true circularity – where steel from end-of-life vehicles becomes steel in new cars – the EU must also set quality standards for scrap after shredding.
Specifically, copper contamination needs to stay below 0.1%. Anything higher renders the steel unsuitable for automotive use as it would make it crack, or warp prematurely, so it ends up being downcycled into lower-grade sectors like construction.
According to the Öko-Institut, removing just the main wire harness before shredding can cut copper content from 0.4% to 0.2%. With additional processing, that can drop below the 0.1% threshold.
A make-or-break moment to clean up car steel
Recycled content targets and quality standards on scrap after shredding are not alternatives – they’re two sides of the same coin. Together, they can unlock circular steel for the EU car industry, cut emissions, and reduce dependence on imported raw materials.
Steel is 100% recyclable when treated properly. But without political action, the EU risks locking in another vehicle generation based on virgin materials. If lawmakers act, Europe can lead the way in circular manufacturing. Just as recycled paper and aluminum cans became the norm through smart policy and standards, recycled steel in cars can too.
Now it’s up to EU lawmakers to seize the opportunity and not let it go to waste.
