Car to Car Steel
Potential of End-of-Life Vehicle deep-dismantling and use of copper depolluted steel scrap to decarbonize automotive flat steel production
Decarbonizing mobility is essential and requires simultaneously leveraging efficiency, modal shift and vehicle electrification. At the same time, reducing the production footprint of vehicles is amongst those pivotal levers. Addressing embedded emissions in materials and supply chains is even more critical for electric vehicles for which environmental residual impact concentrates in the manufacturing phase. Steel decarbonisation is a particular priority, as it is the most widely used material in cars and trucks and the second-largest contributor to greenhouse gas (GHG) emissions in vehicle manufacturing.
Beyond reducing emissions in primary steel production through the development of Electric Arc Furnaces (EAF) using Direct Reduced Iron (if produced with green H2), vehicle steel emissions and material footprint can be significantly reduced by increasing the use of secondary (recycled) raw materials. Closing this circularity loop would prevent downgraded recycling to lower-quality steel grades and would usefully complement the shift from coal-based blast furnaces (BF-BOF) to the DRI-EAF route. EAFs can incorporate a significantly higher proportion of steel scrap than the BF-BOF route, including for demanding production processes (e.g. high-quality flat steel used for car body stamping). Notably, the automotive manufacturing market is widely recognized as the primary sector (lead market) poised to absorb decarbonized steel production.
In parallel, the Circular Economy is a key pillar of the Clean Industrial Deal released by the European Commission in February 2025, aiming to enhance industrial autonomy and competitiveness in Europe. Additionally, the concept of circularity is particularly reflected in the Commission’s proposal for a regulation on circularity requirements for vehicles and the management of end-of-life vehicles (ELVs). This regulation includes a provision mandating a minimum recycled steel content in new vehicle production. Similar requirements would apply to other materials, such as plastics and aluminum, with a potential prerequisite that a portion of recycled content originates from ELV treatment. This report examines the feasibility and relevance of this ambition, highlighting its importance for resource efficiency (both for steel and copper), as well as its strategic implications for resilience and competitiveness within the European industry.
The proposed regulatory direction, which aligns with the commitments of many European carmakers to increase recycled materials in their vehicles, still raises questions regarding the most relevant technical approach and its economic implications. More specifically, it requires assessing how to increase and maintain the technical and economic value of ELV steel scraps, particularly those categorized as “E40” scrap (post-consumer shredded scrap, as opposed to pre-consumer scrap or stamping production scrap “E8” which is another scrap category generated during vehicle manufacturing)1It should be noted that other scrap categories exist (e.g. E1, E3…) which are not related to the vehicle life cycle (except for some parts from mechanical engineering). These categories will be mentioned in the report but not discussed further as they are not related to vehicle flat steel closed loop recycling, which is the focus and purpose of this study.. A key challenge is the level of copper contamination in E40 scrap, which limits the extent to which it can be incorporated into new flat steel production.2 Copper is one of many other pollutants of steel scrap (e.g. Al, C, N, Cr, Ni, Sn, Si, S, P…) and other steriles. However, unlike other materials, Cu cannot be removed in steelmaking and might cause casting, surface quality, coating, welding problems etc Copper, present in ELVs as wiring and electrical components (in addition to being sometimes naturally present in steel), is the primary pollutant in ELV steel scrap. At the same time, paradoxically, copper is globally recognized as a critical material for the energy transition, making the current losses in Europe’s ELV treatment process unsustainable.
To provide independent and holistic insights, the Institute for Mobility in Transition (IMT-IDDRI) has studied the technical and economic feasibility of closed-loop ELV steel scrap recycling for high-quality automotive flat steel production. IMT conducted a deep-dismantling project to assess whether enhanced copper removal from ELVs can improve scrap quality to the level required for reintegration into DRI-EAFs for high-end flat steel grades, while maintaining a viable business model for stakeholders across the recycling value chain.
Achieving closed-loop circularity would address three key challenges: (i) reducing primary raw material consumption, (ii) lowering the GHG footprint of new vehicle production, and (iii) providing flexibility in the EAF supply chain by enabling partial replacement of DRI with high-quality shredded steel scrap, if available in sufficient quantities.
As part of IMT’s large-scale trial in 2024, nearly 300 ELVs were dismantled using an industrial process to manually remove copper-containing pollutants. The depolluted vehicle hulks were then shredded and tested in both a large-scale steel mill and laboratories to determine their suitability for high-quality automotive flat steel production.
Our findings indicate that by increasing and improving manual wiring removal during dismantling, the copper content in E40 scrap can be reduced to 0.09%, a significant improvement compared to the current 0.4% average in E40 from ELVs commercialized in Western Europe. 3DAEHN Katrin et al. (2017), Environmental Science & Technology, How Will Copper Contamination Constrain Future Global Steel Recycling?, https://www.researchgate.net/ publication/316502506_How_Will_Copper_Contamination_ Constrain_Future_Global_Steel_Recycling; ADEME, Deloitte, (2023) Etude du potentiel d’amélioration du recyclage des métaux en France, https://www.actu-environnement.com/media/pdf/ news-43668-potentiel-amelioration-recyclage-metaux.pdf This reduction falls below the 0.15% threshold required for automotive-grade flat steel production,4« Average global scrap currently has a copper content of 0.15% and already exceeds the limit for a large share of high-end steel products”, Material Economics (2020), Preserving value in EU industrial materials – A value perspective on the use of steel, plastics, and aluminum, https://materialeconomics.com/node/15 making a closed-loop value chain possible. Furthermore, this quality improvement is economically viable, as revenues from recovered copper offset additional labor costs (considering French labor costs).
Based on these findings, we recommend establishing a new commercial standard, E40+, which accounts for improved shredded scrap quality, thereby increasing its market value and benefiting the entire value chain. This added value creation could also help limit the export of ELVs outside the EU, which poses multiple concerns, including safety issues and the loss of strategic materials critical for European industry resilience.
In light of ongoing discussions on a revised ELV Regulation, these results reinforce the ambition and feasibility of fostering closed-loop steel scrap recycling in the automotive sector. The IMT study provides technical and economic evidence on the importance of requiring or incentivizing copper removal at the dismantling or post-shredding stage. Establishing quantitative targets will be key to defining a new scrap classification that fosters value creation and fair distribution throughout the supply chain. Additionally, the regulation should include eco-design requirements for OEMs to facilitate the removal of copper wiring from ELVs.
This study, which focuses on the dismantling stage, will be complemented in 2025 by further trials at the shredding stage. These tests will evaluate the effectiveness of post-shredding technologies (advanced sorting technologies), particularly in ensuring high-quality control, which is essential for producing premium automotive steel.
- 1It should be noted that other scrap categories exist (e.g. E1, E3…) which are not related to the vehicle life cycle (except for some parts from mechanical engineering). These categories will be mentioned in the report but not discussed further as they are not related to vehicle flat steel closed loop recycling, which is the focus and purpose of this study.
- 2Copper is one of many other pollutants of steel scrap (e.g. Al, C, N, Cr, Ni, Sn, Si, S, P…) and other steriles. However, unlike other materials, Cu cannot be removed in steelmaking and might cause casting, surface quality, coating, welding problems etc
- 3DAEHN Katrin et al. (2017), Environmental Science & Technology, How Will Copper Contamination Constrain Future Global Steel Recycling?, https://www.researchgate.net/ publication/316502506_How_Will_Copper_Contamination_ Constrain_Future_Global_Steel_Recycling; ADEME, Deloitte, (2023) Etude du potentiel d’amélioration du recyclage des métaux en France, https://www.actu-environnement.com/media/pdf/ news-43668-potentiel-amelioration-recyclage-metaux.pdf
- 4« Average global scrap currently has a copper content of 0.15% and already exceeds the limit for a large share of high-end steel products”, Material Economics (2020), Preserving value in EU industrial materials – A value perspective on the use of steel, plastics, and aluminum, https://materialeconomics.com/node/15