12-Company Consortium Selected for Japan's Ministry of the Environment FS Project on Stable Recycled Plastics Supply for Automotive Industry

A 12-company consortium led by Taibo has been selected for the Ministry of the Environment's FY2025 Supplementary Budget project for a Feasibility Study (FS) on building a stable supply system for recycled plastics for automobiles. The project will verify the feasibility of a stable supply model for recycled plastics in the Chubu region, integrating processes from waste plastic collection to the manufacturing and supply of recycled materials while incorporating digital technology.

[Background] In the automotive industry, demand for recycled plastics is rapidly expanding due to the rise of sustainability requirements and the proposed European End-of-Life Vehicle (ELV) regulations. However, domestic challenges such as supply shortages, quality inconsistencies, cost competitiveness, and traceability assurance have become apparent. Furthermore, the projected supply of recycled plastics for automobiles by 2041 is estimated at 69,000 to 95,000 tons, a significant shortfall against the target of 200,000 tons. Given these challenges, collaboration across the entire supply chain—including resource collection, manufacturing, logistics, and end-users—is essential.

[Overview] This project will comprehensively evaluate whether various waste plastics (from automobiles, packaging, home appliances, and industrial waste) can be collected on a large scale to ensure the quality and supply required by the automotive industry.

FS Outline 1. Period: May 15, 2026 – February 26, 2027 2. Target Area: Chubu Region (around Aichi and Mie Prefectures) 3. Main Verification Items: - Understanding the potential for procuring recycled resources and raw materials - Examining functions, facilities, and processing flows for recycled plastic collection hubs - Investigating methods for quality assurance and material design for recycled raw materials - Examining traceability and information management infrastructure using digital technology - Studying logistics efficiency - Examining business schemes and feasibility

4. Company Roles: - Compounding: Ishizuka Glass, Isono, Omi Bussan, Taibo, Yagikuma (Developing materials meeting automotive quality and performance standards) - Resource Procurement/Manufacturing: J-CIRCULARS, Daiei Kankyo, Toei (Collection, sorting, and recycling) - Logistics: Kaneyoshi (Optimizing transport methods) - Digital/Consulting: Auxilia Consulting, Resource Circulation Systems, BIPROGY (Traceability, data integration, and supply chain visualization)

5. Project Vision (FS Features): - Large-scale resource integration model combining diverse waste sources - Exit-oriented model based on established automotive industry transaction records - Implementation-oriented consortium visualizing the entire supply chain - Advanced circular model using digital tech and material design - Resource circulation model connecting daily life with the manufacturing industry.