A Japanese consortium, led by Mitsubishi Chemical Group, is carrying out a feasibility study with the aim of developing an advanced plastics recycling hub which will supply high-quality recycled materials for automotive manufacturing.
The project is being driven, in part, by tightening regulations particularly in Europe requiring the use of recycled materials in the automotive sector. Japan, which rarely uses recycled plastics in its domestic automotive production, has yet to establish a system that can provide a stable supply of recycled plastic, the group said.
At the end of 2025 the European Parliament agreed a deal on rules for the European Union’s automotive sector that would see a minimum of 15% recycled plastic used in new vehicles within six years of requirements entering into force, rising to 25% within ten years.
Japan’s study will lead to the development of a business model for efficiently converting post-consumer plastic sourced from construction and demolition, industry and office waste, along with automotive and electrical appliance waste. The study will also develop methodology for using digital technology and AI for advanced sorting of the waste.
Along with Mitsubshi Chemicals, eight partners are involved in the feasibility study. These include Japan Polypropylene Corporation, which will focus on mechanical recycling, along with advanced sorting flows and traceability, and Toyota Motors which will focus on advanced sorting flows and a traceability study. The project partners will also consider which post-consumer plastics are best suited to mechanical or chemical recycling.
In a statement the partners said that they will “identify challenges associated with establishing the hub for recycled plastics for use in automobiles and other applications, and will evaluate post-consumer plastic procurement, quality control, sorting and processing into recycled feedstocks, end-user feedback, traceability, and business viability, as appropriate.”
Further reading:
- ‘Dramatic slowdown’ in shift to circular plastics in Europe
- Plastic recycling rates are stubbornly low: Here's what's going wrong
- Investment of between €6.7 and €8.6 billion needed if EU to meet its recycled plastics target
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