The European automotive industry, the second-largest steel consumer in the EU, faces a familiar challenge — how to transition from traditional, high-emission production to a circular model. Although steel is almost entirely recyclable, recycled steel currently makes up only six percent of the material used in car manufacturing.
The reason lies in the way vehicles are recycled. At the end of their life cycle, cars are shredded in recycling facilities along with various other materials, including copper from wiring. Such steel is unsuitable for reuse in the automotive industry, as even a minimal copper content affects the structure of the material, according to a report by the organization Transport & Environment.
To change this, the European Parliament is considering amendments to the End-of-Life Vehicles Directive, which could introduce mandatory targets for the use of recycled steel in new vehicles. The proposal is to increase this share to 30 percent by 2030, which would provide a strong incentive for the recycling industry to invest in advanced material separation and processing technologies.
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A key obstacle lies in the additional costs: recycling high-quality steel requires copper to be removed before shredding, along with further waste treatment. Without clear demand, recycling centers are unwilling to bear these costs. Only through regulatory targets can the EU create a market that justifies such investments.
The Transport & Environment report also emphasizes the need for qualitative standards. For steel to be suitable for automotive production, the copper content in scrap must be below 0.1 percent. Currently, without special treatment, this level can be up to four times higher. However, even simple actions — such as removing the main wiring harness before shredding — can significantly reduce contamination.
Another key recommendation is the introduction of local content requirements. At present, one-fifth of the EU’s steel scrap is exported, even though recycled steel is significantly cheaper than primary steel. If the EU were to mandate the use of locally recycled material, it would further strengthen the European recycling industry and reduce dependency on raw material imports.
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