Major Japanese companies collaborate on automotive plastic recycling

Nine Japanese companies, including Mitsubishi Chemical Corporation and Refineverse, Inc., have commenced a feasibility study to establish a recycled plastic consolidation hub in the Kanto region. The goal is to create a stable supply chain for high-quality recycled plastics specifically for the automotive industry.

This project was selected for the Ministry of the Environment’s programme focused on building supply systems for recycled materials in vehicle manufacturing. The group includes Takatoshi Kogyo Co., Ltd., Toko Metal Co., Ltd., Mitsubishi Electric Corporation, digglue Inc., Japan Polypro Corporation, and Rhombic Corporation, with Toyota Motor Corporation participating as a collaborator.

The study addresses the growing global demand for recycled content in vehicles, driven largely by tightening regulations in Europe. Currently, Japan lacks the infrastructure to provide a consistent supply of high-quality recycled plastic that meets the rigorous standards of car manufacturing.

The proposed hub will use digital technology and artificial intelligence to achieve advanced sorting of used plastics. The integration of collection, sorting, and material design would establish a business model of quality and traceability. The feasibility study will runs until February 2027, and focuses on several key areas including the implementation of AI in sorting processes and the evaluation of material recycling for automotive-grade requirements.

The project encourages collaboration between “artery” and “vein” industries. It includes producers who design and supply materials working directly with recyclers who manage waste collection and processing. This partnership allows the group to evaluate the quality, volume, cost, and origin of recycled materials as a single, integrated supply chain. The study also explores the optimal use of both mechanical and chemical recycling by grading materials based on their condition to maximise resource value.

To ensure reliability for end-users, the project incorporates a traceability platform. This system tracks the origin of raw materials, the specifics of the recycling process, and the percentage of recycled content. Such transparency is intended to provide automotive manufacturers with the necessary environmental value data to meet regulatory requirements.

Following the conclusion of the study in early 2027, the companies intend to move toward a demonstration phase or full commercialisation.