Assessing the economics of auto recycling activities in relation to European Union Directive on end of life vehicles

Abstract

Technical requirements for car design and minimum reuse and recovery rates for end-of-life vehicles (ELV) are the subject of a new EU Directive on ELV. This Directive is expected to induce changes in the infrastructures required for ELV processing, and presents a challenge to maintain such economically viable infrastructure. Technical-cost models of ELV processing operators were developed to interpret the changing economics of auto recycling activities under the new EU Directive on ELV. The results obtained show that the recycling targets defined in the EU Directive for 2006, require the removal of an increased number of plastic parts from an ELV. In particular, removing up to 14% of the ELV mass results in a recycling rate over 80%, even for vehicles with a ferrous content up to about 65%. These operations can be performed economically by dismantlers, provided that they may get a steady flow of ELV hulks, free of charge, and that the international quotation for steel scrap does not come significantly below 120 €/ton. In the long term, developing separation technologies for automotive shredder residues and finding recycling possibilities for the products gained from the separation, might be a valuable scenario to meet the 2015 recycling quotas.