Circularity measures on critical raw materials and e-drive motors in vehicles

The transition to e-mobility has accelerated the demand for and has heightened the EU’s dependency on critical raw materials (CRMs) such as rare earths, copper, lithium, cobalt, and nickel, increasing the urgency for higher circularity in end-of-life vehicles. Starting from a previous report, this report expands on measures outlined in the new End-of-Life Vehicle Regulation proposal (ELVR) 2023/0284/EC and supports its implementation by assessing novel circularity measures for vehicles and their components and parts, aligning also with the Critical Raw Materials Act and the EU’s strategic goals. Key measures include mandatory labelling for rare earth permanent magnets integrated into e-drive motors optimizing their recovery, improved disassembly processes, and higher recycling efficiency for aluminium parts and e-drive motors. Labelling REPMs is intended to enhance waste management operators’ efficiency and strengthen the EU’s recycling value chain, while recycled content targets could foster economic and environmental competitiveness. Synergies between ELVR measures and other EU policies, such as the Waste Framework Directive, new Waste Shipments Regulation, Carbon Border Adjustment Mechanism, EU Emissions Trading System, and the forthcoming Circular Economy Act as well as the Clean Industrial Deal, emphasize the need for harmonization to retain CRM flows within the EU. Innovative strategies, including cooperative human-robot disassembly and enhanced reporting mechanisms, are proposed to optimize CRM recovery. Furthermore, the report explores possible repurposing of e-drive motors in industrial applications, highlighting the current challenges and recommending further studies to unlock future business opportunities. By addressing market, regulatory and information failures in waste management and material recovery, supporting the development of secondary CRM markets, and proposing harmonized policy frameworks, this study contributes to the EU’s circular economy objectives and competitiveness. The findings also underscore the economic and environmental importance of a paradigm shift in business models for a sustainable automotive value chain and a cleaner energy transition.