End-of-Life Vehicle
Recycling in Japan
16 March 2024
Tokai University
Japan Automobile Recycling Promotion Center
Eiji Hosoda

1. Overview
Development of ELV Recycling in Japan

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E. Hosoda, Tokai University/JARC2

Development of ELV Recycling
Target: effective utilization rate
(weight ratio) more than 85% , and
99% until 2015

Target rate of effective utilization
rate 99％ was attained（13％ thermal recovery rate included）

Market Recycling

ELV Recycling
Initiative（1997）

ELV Recycling Law（2002）

Recycling based on a marketmechanism

Recycling based on soft law
and a market mechanismEffective utilization
rate* was less than85%

Recycling based on hard law, softlaw and a market mechanism

Waste Management and Public Cleansing Law* Effective utilization rate: material recycling rate + thermal recovery rate
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2. Before ELV Recycling Law
was Introduced
1. ELV Recycling Based on Market Mechanism
2. Initiative for Better ELV Recycling
3. Turning Point for Legislation; Teshima Island Incident
4. Limitation of the Initiative

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Before ELV Recycling Law wasIntroduced• ELV recycling was made basically in competitive markets
before ELV Recycling Law was introduced.
• Prices of ELV and its body-shell mainly depended on an ironscrap price, and partly non-ferrous metal prices.
• Thus, as an iron price fell, prices of ELV and its body-shell
also fell, sometimes fell down below zero. (Goods⇒Bads)• Actually, the price of a body-shell of ELV became negative inthe late 1980s.
• Some informal actors tried to avoid additional cost burden,
by improper treatment of ELVs or even by illegal dumping.
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ELV and its body-shell:from goods to bads
Body-shell

ELV
Dismantling process(Strip down of parts)

goods／bads

Auto-press

goods／bads
Illegaldumping

Goods／bads
Shredding process

Iron：Goods
Landfill

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Recycling forsecondary
resources
E. Hosoda, Tokai University/JARC

Non-ferrous
metals：Goods
ASR, CFCs,
Air-bag：Bads

6

Initiative for Better ELV
Recycling (1997)• Since it turned out that the ELV recycling system based
only on market mechanism did not work well, thegovernment encouraged relevant actors of ELV recycling
to cooperate one another for better treatment of ELVs.
• Thus, ELV Recycling Initiative was agreed by thoseactors in 1997.
• The initiative targeted 85% effective utilization rate of
ELV for a while, and 95% until 2015.
• The limitation of the initiative was that it was only
among formal actors, and informal actors were still active.
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Turning Point for Legislation：
Teshima Island Incident• Since the late 1970s, an informal business company began
illegal dumping of waste such as residue of end-of-life
products in Teshima Island in Kagawa prefecture.
• The residue contained toxic substances and polluted theisland.
• Automobile shredder residue (ASR) was considered to be
one of the substances which caused pollution.
• The case was legally settled down in 2000, but it tookhuge amount of money to purify the polluted soil.
• The incident gave an impetus toward legislation of ELV
recycling.
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Heavily Polluted Teshima Island

Source：Website of Kagawa Prefecyure
https://www.pref.kagawa.lg.jp/haitai/teshima/keii/teshi-1-1.html

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The Point at the Issue
ELV

Body-shell

ASR, CFCs, Air-bag

Bads

Bads

Price fall ofiron scrap

Goods/bads(negatively priced)

Informal business actors
Illegal dumping or improper treatment
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Limitations of the Initiative• The ELV Initiative worked well to the extent that theeffective utilization rate of ELV increased to nearly 85%.
• However, the rate was at most 85%, and a higher
effective utilization rate was considered to be implausible.
• Furthermore, it was not easy to exclude informal actors
by means of the initiative.
• This is partly because the appropriate fee for proper
recycling and disposal of ELV was not charged to carowners in the framework of the initiative.
Necessity for legislation of the ELV Recycling Law
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3. ELV Recycling Law
1. How ELV Recycling Law works
2. Outcome of the Law
3. Remaining Issues

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The Basic Idea of the ELV Recycling
Law (2002)
goods
ELV

Body shell
Dismantling process(Strip down of parts)

Pressing

Treatment costs of these three
items are covered by the fee paid bycar-owners. ⇒The other items aretransacted as goods。
Auto-press

goods

goods

goods
Shredding process

Illegaldumpint

Recycling

Iron：goods
Non-ferrous
metals：goods

Landfill
Recycling/thermal recovery/proper treatment
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Japan Auto Recycling Partnership
ASR､CFCs、Airbag
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Recycling Flow of ELV
under the ELV
Recycling Law

JARC*

JARP*** JARC: Japan Automobile Recycling Promotion
Center, the fund managing institution, designatedby ELV Recycling Law** JARP: Japan Auto Recycling Partnershipfounded by automobile manufacturers andimporters
Source: Website of the Ministry of Environment,
https://www.env.go.jp/content/900452891.pdf
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Fundamental Points of the Law• The law guarantees visibility of the flow of ELVs,
legitimate transaction of ELVs among basically only
formal actors, and appropriate charge-payment for ELV
treatment.
• By charging treatment fee of ASR, CFCs and airbags on
car-owners, other items of ELV have come to betransacted as goods in markets. ⇒ Wise use of markets!
• Car manufacturers are responsible for administrating andcontrolling proper treatment of ASR, CFCs and airbags.
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Outcome of the Law• The target rate of the effective utilization of ELV 95%
was attained.
• The flow of ELVs was controlled by means of thelegislation coupled with wise use of markets.
• Informal actors are excluded, although there are someexceptions.
• Markets of used and rebuilt parts of ELV are vitalized.
• Minute dismantling of ELV has gradually appeared.
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Remaining Issues• How can ELV recycling contribute to realization of acircular economy (CE), accelerating more cyclical use ofsecondary resources?
• In other words, how can we promote advanced reuse
and recycling of ELV, such as minute dismantling?
• A scheme of advanced reuse and recycling of HV, PHV,EV, FCV and so on must be launched.
• Particularly, a system of proper collection, reuse,recycling and disposal of lithium-ion battery (LiB) must be
constructed.
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4. Two Big Issues
1. Issue 1: Scheme for Advanced Recycling
2. Issue 2: Recycling of Lithium Ion Battery

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Incentive Scheme for Promoting
Recovery of Secondary Resources
Rough sketch of the scheme
Costs for dismantling whole ELV
Incentive②（Part of ASR treatment fee）
Body shell

ELV

Authorized scrap
dealer of whole (Electric furnace)dismantled ELVCar
manufactures
Incentive①（Reward for ASR reduction） （ASR team）

Dismantler
Body shell

ASR

Shreddingoperator
Plastics
Glasses

ASR Recycling
facility

Plastics

Recycling costs

Incentive③（ Reward for ASRreduction ）Secondary resource producer
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E. Hosoda, Tokai University/JARC19Comparison between Conventionaland Incentive Schemes
Car manufacturer

ELV

Shreddingoperator

Dismantler

ASR
180kg

Recycling costs corresponding to ASR180kg
Recyclingfacility＜Conventional scheme＞
Used/rebuilt
parts

Materialmanufacturer＜Incentive scheme＞

Reward corresponding to
reduction of ASR20kg(Economic incentive)

20kg

Dismantler

Shreddingoperator

Used/rebuilt
parts

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Car manufacturer

Recycling costs corresponding to ASR160kg

Plastics・glasses etc.
（secondary resources）

ELV

MetalsE. Hosoda, Tokai University/JARC

ASR
160kg Recycling
facilityMetals

20

LiB Recycling Scheme underConsideration
Battery receipt without charge
ELVDismantler

Information
provision

ELVCar dealer
Car repair

Commission fee
Founded by automobile
manufacturers and importers

Report on Completion of Recycling

Battery rebuilt facility(Reselling)
Battery recycling facility(Material recycling)

Battery recycling facility(Cascading recycling)
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Automobile manufacturer
etc.

・Information management
Payment ・Evaluation/judgement
・Payment

Japan Auto Recycling
Partnership
MissionreportCollection
Receipt
information requestPayment
Battery transportation

Transport company(Collection, storage)

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Source: Japan Automobile Manufacturers AssociationProjection of the Number of
LiB Discharge
Assumption 1: The number ofdecommissioned HV, PHV, EV and soon is 60% of the new sales, so thatthe rate of LiB discharge is also 60%of the new sales.

Number5 million

Assumption 1
Projection of the numberof ELV (HV, PHV, EV etc.)

Assumption 2: The average life time ofthose cars is 16 years.

3 million
Projection of new carsales (HV, PHV, EV etc.)

Assumption 2

Assumption 3: Automobile
manufacturers and importers (JARP)
collect only 20% of the number of LiBdischarge.

Assumption 3
Projection of the numberof LiB Discharge

2010
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Year
Source: Japan Automobile Manufacturers AssociationE. Hosoda, Tokai University/JARC

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No Requirement for Manufacturers
to Use Recycled Materials• Yet, automobile manufacturers are not required to use
recycled materials for their products.
• This forms a striking contrast to the EU’s new ELVRegulation which has been proposed.
EU’s newly proposed ELV Regulation• 25% of the plastic used to produce a new vehicle must
be recycled plastic• 25% of the recycled plastic must come from ELV

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5. Concluding Remarks

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Concluding Remarks• Under ELV Recycling Law, 99% of ELV is effectivelyutilized; 86% material recycling and 13% thermal recovery.
• The number of illegal dumping and improper treatment ofELV has decreased, since many informal actors areexcluded from the ELV recycling scheme.
• Yet, thermal recovery should be replaced with material
recycling and landfill of the residue should be minimized.
• The incentive scheme for promoting more advanced
reuse and recycling is now under consideration.
• Car manufacturers and importers are planning a newscheme for collecting and recycling LiB.
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6. Appendix

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Number of Vehicle Owned(10,000units)
7,900
7,850
7,791

7,800

2018

2019

7,846

7,829

7,828

2020

2021
2022
(Fiscal year)

7,763

7,750

7,706

7,700

7,728

7,668

7,650
7,600

7,811

7,815

7,565

7,582

7,607
7,562

7,550

7,559
7,529

7,517

7,514

2008

2009

2010

7,500
7,450
7,400

7,350
7,300
2005

2006

2007

2011

2012

2013

2014

2015

2016

2017

Source: Automobile Inspection & Registration Information Association
https://www.airia.or.jp/publish/statistics/number.html
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Number of Car Sales(10,000units)
900

824

800

788

741

710

700
600

654
586

562

653

660

710
670

675

678

689

696

470

488

530

521
460

475

494

400

508

520

526

691

657

629

504
466
422

439

31

Number of new-car sales

300

Number of used-car sales

200

Number of imported-car

100

693

569

532

500

689

27

26

2620

182430

32

36

32

33

35

35

36

34

34

33

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021
2022
(Fiscal year)

0

Source: Japan Automobile Dealers Association
National Federation of Light Vehicle Associations
Japan Automobile Importers Association
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Number of ELVs Generated(10,000units)
392
390

371
365

370
358

357

350

341

343

338

333

336

330

330
316
296

305

310

315

310

304

290

274
270
2005

2006

2007

2008

20092010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022
(Fiscal year)

Source: Ministry of Economy, Trade and Industry (2023) The Current Situation of Automobile Recycling
https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/resource_circulation/jidosha_wg/pdf/058_03_00.pdf
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Number of Used-Cars Exported(10,000units)
180
163

161
155

160

163
154

168
162
152

151

146

144

140

130

134

129

120

112

107

102

100

92

80

60

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021
2022
（Fiscal year）

Source: Ministry of Economy, Trade and Industry (2023) The Current Situation of Automobile Recycling
https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/resource_circulation/jidosha_wg/pdf/058_03_00.pdf
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Average Lifetime of Automobiles
(age)
17.0
16.5

15.5
15.0
14.5

14.1

14.0
13.5
13.0

12.9

13.0

2007

2008

14.3

14.6

14.9

15.2

15.3

2016

2017

15.5

15.6

2018

2019

2021

2022

13.7

13.5

13.4

2009

2010

12.4

12.5
11.5

16.5

16.0

16.0

12.0

16.4

12.0
11.4

11.0
10.5

10.0
2004

2005

2006

2011

2012

2013

2014

2015

2020

(Fiscal year)

Source: Ministry of Economy, Trade and Industry (2023) The Current Situation of Automobile Recycling
https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/resource_circulation/jidosha_wg/pdf/058_03_00.pdf
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Number of Remaining Units of Illegally
Dumped/Improperly Stored ELVs
(1,000units)
250
218
Illegally dumped
200
Improperly stored
150

140

100

57
50

35
23

15

11

10

8

7

7

7

65

555

6552009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

02003

2004

2005

2006

2007

2008

(Fiscal year)

Source: Ministry of Economy, Trade and Industry (2023) The Current Situation of Automobile Recycling
https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/resource_circulation/jidosha_wg/pdf/058_03_00.pdf
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