EU Rules on End-of-Life Vehicles
The EU rules on End-of-Life Vehicles (ELV) are found in the ELV Directive (2000/53/EC), enacted in 2000 and an amendment for the ELV Directive was proposed in 2023.
The ELV Directive aims to prevent and limit waste from end-of-life vehicles (ELVs) and their components, improve the environmental performance of all economic operators involved in the life-cycle of vehicles, and promote the reuse, recycling, and recovery of ELVs. Key provisions of the ELV Directive in relation to the recycling of critical minerals are design mandates for manufacturers:
- hazardous substances such as lead, mercury, cadmium, and hexavalent chromium are prohibited in new vehicles, with specific exemptions.
- the target for reuse, recycling and recovery is aimed at 85% reuse/recycling and 95% reuse/recovery by weight per vehicle
- vehicles should be designed in a way that facilitates the removal of materials, parts, and components for reuse and recycling.
A review launched in 2021 led to a proposal for a new regulation in 2023, which seeks to update and enhance the existing framework through the Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on circularity requirements for vehicle design and on management of end-of-life vehicles, amending Regulations (EU) 2018/858 and 2019/1020 and repealing Directives 2000/53/EC and 2005/64/EC), with the new regulation expected to be finalised by 2025. This proposal aims to replace the existing ELV Directive and the Directive on type-approval of motor vehicles regarding their reusability, recyclability, and recoverability. It extends the scope to cover the entire life cycle of vehicles, including trucks and motorcycles, and aligns with the European Green Deal and Circular Economy Action Plan to enhance circularity in vehicle design and management, providing for the following:
E-Drive Motors and Permanent Magnets:
- Mandatory removal of e-drive motors containing rare earth elements prior to vehicle shredding
- Specific labelling requirements for permanent magnets containing neodymium, dysprosium, praseodymium, terbium, or samarium
- Requirements for manufacturers to provide detailed information about the location and removal procedures for e-drive motors containing critical minerals
Recycling Targets:
- Introduction of potential future recycled content targets for critical raw materials (CRMs)
- Empowers the Commission to establish minimum recycled content requirements for neodymium, dysprosium, praseodymium, terbium, samarium and boron used in permanent magnets
Information and Traceability:
- Manufacturers must declare the share of recycled content of critical minerals in permanent magnets
- New "Circularity Vehicle Passport" requirement to provide digital access to information about CRM-containing components
Treatment Requirements:
- Specific provisions for treating permanent magnets containing rare earth elements
- When reuse is not possible, requirements for separate collection and processing of CRM-containing components
- Stock-piling requirements for NdFeB permanent magnets when recycling technologies are not yet available
Integration with Other Regulations:
- Alignment with the Critical Raw Materials Act for consistent treatment of critical minerals
- Coordination with the general EU framework for ensuring sustainable supply of critical raw materials
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