Nine Companies Launch Feasibility Study for 'Recycled Plastic Consolidation Hub' to Secure Stable Supply for Automotive Industry

Nine companies, including Mitsubishi Chemical Corporation, Takatoshi Kogyo Co., Ltd., Toko Metal Co., Ltd., Refinverse, Inc., Mitsubishi Electric Corporation, digglue Inc., Japan Polypropylene Corporation, Rhombic Corporation, and Toyota Motor Corporation as a cooperating partner, are launching a feasibility study (FS) to build a stable supply system for high-quality recycled plastics usable for automotive applications. The project involves integrated verification of waste plastic collection, sorting, recycling into raw materials, material design of recycled plastics, and traceability. This FS has been selected under the Ministry of the Environment's 'FY2025 Supplementary Budget Feasibility Study Project for Building a Stable Supply System of Recycled Plastics for Automobiles, etc.'

In recent years, the automotive sector, led by Europe, has seen a tightening of regulations on the use of recycled materials, creating an urgent need to build a stable supply system for high-quality recycled products. However, such systems are not yet established in Japan, and recycled plastics are rarely used in automotive manufacturing. Therefore, the nine companies aim to build a 'Recycled Plastic Consolidation Hub' that utilizes digital technology and AI to achieve high-level sorting and traceability of used plastics, establishing a business model to recycle sorted plastics fully and supply high-quality recycled plastics. This FS serves as the initial verification of this initiative.

Outline of the FS

During the period until February 2027, the following will be carried out:

(1) Elaboration of concepts for introducing digital technology/AI in the high-level sorting process of used plastics. (2) Investigation into the feasibility of using material recycled materials that meet required quality standards for automobiles. (3) Investigation into the feasibility of chemical recycling for used plastics not suitable for material recycling. (4) Organization of data linkage requirements for ensuring traceability. (5) Evaluation of economic rationality and estimation of the impact of expanding recycled plastic supply. (6) Creation of an implementation roadmap for phased introduction.

Features of the FS

1. Integrated supply chain through public-private/waste-manufacturing collaboration This project links the 'venous' sector (waste collection/sorting operators) with the 'arterial' sector (material design, compounding, and supply to customers). This allows for integrated assessment of quality, quantity, cost, and origin proof of recycled materials.

2. Combination of high-level sorting and material design By combining advanced sorting technology with recycled plastic material design technology, the project will advance the development of recycled materials that meet the high standards required by the automotive industry.

3. Optimal utilization of material and chemical recycling By sorting (grading) raw materials suitable for either material recycling or chemical recycling, the project will examine a model that maximizes the resource value of all used plastics.

4. Improving reliability through traceability By utilizing a traceability foundation, the project will proceed with visualizing raw material origins, sorting and recycling processes, recycled content ratios, and environmental values. This aims to build a supply system for recycled plastics that customers can use with confidence.