The new ELV Regulation has been published

On July 24, 2026, Regulation (EU) 2026/1738 was published in the Official Journal of the European Union, establishing the new European regulatory framework for circularity in vehicle design and End-of-Life Vehicles (ELV) management.

This Regulation replaces Directive 2000/53/EC, which had served as the benchmark in this sector for over 25 years. This marks a crucial step forward for the automotive industry toward a boosted circular economy model and increasingly stringent chemical management.

The new regulation comprehends 59 articles and 15 annexes, a significant shift from the previous directive's framework. As a Regulation, it is directly applicable in all EU Member States without requiring national transposition. It will apply from September 1, 2028, though certain provisions take effect as early as September 14 this year.

This new regulation rewrites the rules of ELV compliance. Under Directive 2000/53/EC, the framework already included restrictions on heavy metals (lead, cadmium, hexavalent chromium and mercury) in vehicle components, extended producer responsibility (EPR) obligations, and recycling/recovery targets. Driven by these requirements, the automotive supply chain gradually established granular systems for tracing chemical composition and sustainability information, most notably through the International Material Data System (IMDS).

The major updates introduced by Regulation (EU) 2026/1738 impact several core areas:

• scope extension, moving beyond categories M1 and N1 under the old ELV Directive, the scope now progressively expands to:
  • • special purpose M1 and N1 vehicles starting from September 1, 2029.
    • M2, M3, N2, N3, and O vehicle categories (including special purpose vehicles in these categories) starting from September 1, 2031;
    • Category L vehicles starting from September 1, 2031;

specific exemptions from certain obligations are provided for these newly added categories;

• mandatory design requirements ensuring targets of 85% for recyclability/reusability and 95% for recoverability;
• monitoring and minimizing SoC (Substances of Concern), adopting the definition set out in Regulation (EU) 2024/1781 (ESPR);
• the European Chemicals Agency (ECHA) will play a pivotal technical role in evaluating updates to substance restrictions and prohibitions in vehicle components;
• revision of exemptions under Annex IV (formerly Annex II of the ELV Directive) allowing temporary derogations for Cd, Pb, Hg, and Cr(VI);
• minimum progressive quotas for recycled content (e.g., for plastics: 15% by 2032 and 25% by 2036, with 20% sourced from closed-loop recycling of ELVs or components removed during use);
• implementation of the Digital Circular Vehicle Passport containing detailed data to facilitate safe dismantling, repair, and removal of critical components (e.g., EV batteries), as well as tracking hazardous chemicals throughout the vehicle's lifecycle;
• mandatory development of a corporate circularity strategy for each manufacturer by September 1, 2029;
• reinforced Extended Producer Responsibility obligations and stricter controls on shipment and export of end-of-life vehicles.

By September 1, 2029, Member States must lay down rules on control measures, enforcement, and penalties applicable to infringements of this Regulation.

Furthermore, Regulation (EU) 2026/1738 amends existing EU legislation, including Annex I of Regulation (EU) 2023/1542 (Batteries Regulation). This introduces new restrictions on cadmium, lead, and hexavalent chromium in automotive and electric vehicle batteries, applicable from August 13, 2026.

This reform represents a long-awaited landmark for the industry. Given the expanded scope, its ripple effects extend across the entire automotive supply chain and beyond.

We strongly advise impacted companies to review the newly introduced requirements immediately to adapt their internal processes, ensure product compliance, and seamlessly address upcoming customer requests.