The Centre for Advanced Manufacturing and Supply Chains, part of the world Economic Forum (WEF) has released a paper that reviews the efforts by the EU, China and the US to foster circularity in the sector.

EVs represent a leap forward in reducing direct emissions, but it is not the whole story, and EVs bring their own environmental impact in their production, usage and disposal.

A more circular economy offers a solution that considers the entire life cycle of automotive products, including extending product lifespan, reuse and remanufacturing, but ongoing efforts for a circular economy within the automotive sector in the EU, China and the US, currently appear to operate in silos according to the report.

Recognising the need to bridge knowledge disparities across these regions, the Circular Cars Initiative (CCI), funded by the ClimateWorks Foundation and in collaboration with Systemiq, focuses on batteries and steel, scrutinising the current landscape and charting the trajectory of public policy interventions within these geographies.

The EU’s approach to embedding circularity within the automotive sector is marked by a series of policies. At the heart of this strategy are the Digital Vehicle Passport and Digital Battery Passport. Attempting to creating a history from cradle to grave, the ambition is laudable.

China's ambition is one of balancing industrial ambition with ecological responsibility. The country's efforts in establishing a robust battery recycling framework signal a commitment to addressing the environmental implications of its EV revolution.

The US has lagged behind the EU and China in circular economy policy-making for the automotive sector. However, recent legislative actions, such as the Inflation Reduction Act, reflect a growing emphasis on domestic recycling of battery materials. The act includes provisions for EV tax credits that require domestic production and recycling, though it does not specify targets for steel recycling from ELVs.

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