Vehicle recycling has come a long way and it’s no longer just about stripping cars for spare parts. Thanks to technological advances, the process is becoming much more sophisticated and disruptive digital technologies like Artificial Intelligence and the Internet of Things have completely transformed how it’s done.
We recently published a report, Digital Transformation in the Automotive Industry, which identifies nine key domains of change in the automotive industry as a whole. Vehicle recycling is one such domain, and this blog reviews the steps being taken to promote and encourage vehicle recycling by governments and the automotive industry, and the digital technologies that enhance the outcomes of vehicle recycling.
Every year, 12 million vehicles in the US and 6 million vehicles in Europe reach their end-of-life and are consequently treated as waste. These vehicles are a potential valuable source of raw materials including steel, aluminium, copper, and battery chemicals (in the case of electric vehicles). Therefore, the development of strategies to reuse and recycle components from end-of-life vehicles (ELVs) provides governments and automotive manufacturing companies both with an opportunity to reduce dependence on limited resources, thereby contributing towards sustainability efforts. Moreover, the identification of reusable materials can help the auto repair industry deal with challenges associated with shortages of spare parts.
In this section, we have highlighted some of the regulations that have been introduced and implemented (in some cases) by various governments and regions around the world to stimulate recycling rates.
The EU Batteries Regulation aims to limit harmful substances in batteries sold within the EU market. It states that starting February 2027, all electric vehicles (EVs) and certain industrial batteries must include a digital "battery passport", providing key details such as type, model, production date, chemical composition, repair guidance, carbon footprint, and durability. Furthermore, from July 2024, battery manufacturers will also be required to disclose the carbon footprint of batteries across their entire lifecycle, from sourcing and production to end-of-life processing.
The Chinese government has launched the development of a Chinese digital battery passport to streamline trade with the EU by mandating similar transparency requirements for data throughout China's electric vehicle battery supply chain.
The 2002 ELV Recycling Law mandates that consumers must pay a fee on buying a new vehicle and adds procedures for the disposal of chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs), shredder residue (potentially including glass, fibre, rubber, plastics and dirt), and airbags from vehicles.
The country’s 2007 Act for Resource Recycling of Electrical and Electronic Equipment and Vehicles Exit EPA Disclaimer addresses the use of hazardous substances, recyclability of materials, collection of ELVs, recycling rates, and information exchange through an online database.
The automotive industry is striving to reduce natural resource consumption and the environmental impact of vehicles by deploying multiple techniques such as recycling materials from end-of-life vehicles. For instance, BMW Group is undertaking a project to explore the use of AI and robotics in optimising the end-of-life vehicle (ELV) dismantling process. By employing optical and AI-assisted systems to detect and sort reusable materials during the post-shredding phase, BMW aims to enhance the quality and purity of recovered materials such as aluminium, steel, glass, copper, and plastic. This initiative aligns with BMW’s commitment to sustainability, supporting its goal to increase the proportion of secondary materials in new models from 30% to 50%.
The increasing demand for electric vehicles has in turn increased the demand for EV batteries, which require scarce minerals like cobalt, lithium, and nickel. Recycling EV batteries from end-of-life EVs is a sustainable alternative and can reduce the mining and refining of new minerals, contributing towards sustainability. Some significant steps to encourage EV battery recycling have been taken, especially in developed countries like the US. For example, in February 2023, Redwood Materials received a USD2 billion loan from the US government to build an EV battery recycling plant in Nevada.
The integration of digital technologies in vehicle recycling is revolutionising the automotive industry, driving both efficiency and sustainability. Through innovations like Artificial Intelligence, Autonomous Robotic Systems, and Data Sharing, the recycling process has become more accurate, cost-effective, and environmentally friendly. These technologies enable better tracking of materials, enhanced fault detection in recovered parts, and improve resource recovery rates, contributing to a circular economy. As digital tools continue to evolve, the automotive industry is poised to achieve its environmental goals while maximising the value of end-of-life vehicles. Ultimately, the shift towards smart recycling practices will benefit both the automotive industry and the planet.
