In recent years, Chinese government departments like the NDRC have been pushing policies that require electronics manufacturers to take on more recycling responsibilities. Specifically, in 2016, China's EPR policy outlined a goal for key products to use 20% recycled materials by 2025. In reality, most of the recycled materials from post-consumer waste appliances have been downcycled.
In the past two years, the advocacy for circular economy and EPEAT standards for electronics purchasing in the US market, as well as corporate commitments, have prompted electronics products to start incorporating more recycled materials at gradually higher percentages. Meanwhile, more upstream manufacturers and suppliers are joining recycled plastic production and modification, thus further improving material quality.
Recycled Content in Automobiles
Additionally, China's auto recycling policies call for at least 5% recycled content in key components, which has also facilitated adoption of recycled plastics in relevant areas to some degree.
Clear industry policies and incentives will likely expand the use of recycled plastics in auto floor mats, panels, dashboards, decorations, headliners, battery cases, handles, and more.
At the same time, recycled plastics from other areas like PP from electronics will likely flow into auto products.
However, complex approval processes for using recycled plastics in autos, from production to modification to component testing and certification for vehicles, make the process lengthy before foreign brands accept them.
Moreover, the long value chain of dismantling, modification, processing, assembly plants, and finished vehicles squeezes profits for recycled material suppliers, hampering attractiveness and investment.
Currently, recycled PET and PP account for most of the recycled materials used in autos, often sourced from other markets like PET bottles for fibers and PP from electronics.
With the enormous auto market and many electric vehicle headquarters in China, recycled and modified material companies hope to tap into future opportunities.
