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The Global Plastics Treaty and its potential constraints on the electric vehicle industry

August 4, 2025

Latest company news about The Global Plastics Treaty and its potential constraints on the electric vehicle industry

The negotiations on the Global Plastics Treaty aim to establish a legally binding international framework covering the entire life cycle of plastics from production, consumption to disposal. Although the final text is still under negotiation, its core objectives have become increasingly clear, mainly including the following aspects, which will have direct or indirect impacts on the electric vehicle industry:

1. Limit or reduce the production and consumption of virgin plastics: The treaty may set an upper limit on the production of virgin plastics and encourage the use of recycled plastics. This will directly impact the electric vehicle industry's dependence on high-quality, low-cost virgin plastics. The automotive industry has strict requirements on material performance, especially for parts related to safety and durability. Turning to recycled plastics requires overcoming technical and standard barriers.

2. Increase the recycling rate and recycled material content of plastic products: The treaty is likely to set a minimum content target for recycled materials in plastic products (including automotive parts) and promote the design concept of "easy to recycle". This means that electric vehicle manufacturers need to consider the disassembly, sorting and recycling of plastic parts at the beginning of product design, and choose single materials that are easier to recycle or composite materials with good compatibility.

3. Gradually phase out or restrict problematic plastics and chemical additives: Certain types of plastics that pose a high risk to the environment or human health (such as certain applications of PVC) or specific additives used in plastic production (such as certain flame retardants, plasticizers) may be included in the restricted or banned list. The electric vehicle industry needs to review its supply chain to ensure that the plastics and additives used meet the requirements of the future treaty, which may involve the reselection and verification of materials.

 

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