Circular Economy

From Compliance to Competitive Edge:
How Mobility Leaders Drive Business Growth with Design for Recyclability

For decades, automotive regulations have been viewed as hurdles to overcome. Today, leading OEMs are flipping the script — seeing evolving end-of-life and circularity standards not as limitations, but as launchpads for innovation. From materials science to seat design, the next wave of mobility growth is emerging from the intersection of compliance and creativity.

Sponsored Content | This article is sponsored by Dow | By Rich James | Published 2 weeks ago | About a 5 minute read

Image: Dow’s MobilityScience™ team collaborated with Lear and developed INFINAIR™ Polymers which are utilized within Lear’s FlexAir™ technology products. | Dow

Improving efficiency has always been a priority of the automotive industry. That quest has become even more important as we consider its positive impact in creating a more sustainable planet. The automotive sector accounts for a significant share of global carbon emissions, and evolving consumer preferences and new regulations are accelerating the urgency to act.

But leading automakers know that policy compliance alone isn't enough. To win in the next era of mobility, original equipment manufacturers (OEMs) must see sustainability not as a cost, but as a catalyst for innovation and growth.

Plastics now make up about half the volume of a typical car while accounting for just 10% of its weight. This makes plastics indispensable for achieving key engineering goals, especially as automakers race to improve electric vehicle range. Whether a vehicle is gas or electric, the trend is clear: reducing weight is an important path to greater efficiency, and plastics deliver an unmatched combination of lightness, flexibility, and design freedom.

In my role with Dow’s MobilityScience™ Sustainability platform for our Packaging & Specialty Plastics business, I work with innovators every day whose goal is not only to create the materials that will power the future, but also do it in a more sustainable way.

Policy as Innovation Engine

While OEM sustainability goals such as reducing lifecycle and value-chain carbon emissions and increasing recycled content are crucial, policy plays a major role in setting the pace and scale.

The European Union's proposed End-of-Life Vehicle (ELV) regulation is a prime example, by setting mandatory recycled content targets to the plastic parts of the car.

This reflects the larger trend of compliance frameworks becoming more sophisticated and forward-looking, thus increasingly driving investment in sustainability-driven innovation. What's more, since plastic products are globally traded, regional policies will have broad effects.

Alison Nuttall, Head of Sustainability Global Affairs at Jaguar Land Rover (JLR), shared how the automotive industry is experiencing what she describes as “a unique moment in its history.”

“OEMs are shifting from linear to circular throughout the entire vehicle lifecycle – from design to dismantling. This transformation is further accelerated by the influence of public policy, including zero-emission mandates, carbon disclosure requirements, or the End-of-Life Vehicle regulation,” Nuttall said. “To remain compliant, meet the needs of our clients, and uphold our commitment to being a responsible business, we’re innovating across our entire value chain.”

Circularity in Action: A Systems Lens on Plastics

According to the European Parliament, just 19% of plastics materials in today’s vehicles are recycled into new cars.

Mechanical and advanced recycling will both play roles in reaching new industry targets. Plastics Europe, the region’s trade association, has stressed the importance of embracing advanced recycling as complementary to mechanical methods. Together, these technologies can help meet high ambitions for closed-loop plastics.

Dow is investing in mechanical recycling and advanced recycling, also known as chemical recycling. Advanced recycling offers massive, untapped market potential and the ability to bring circularity to previously incompatible areas such as vehicles and food-grade and medical-grade packaging.

Recycled plastics are already being used in many non-visible automotive applications, such as wheel-well and bottom guards and deflectors. However, for uses where finished aesthetics or performance are paramount, advanced recycling provides a new way forward for the use of circular plastics.

Public policy can create enabling conditions for innovation and act as demand pull for sustainable solutions. For example, the proposed ELV regulation aims to set mandatory recycled content targets to the plastic parts of the car. It also looks to improve recyclability and overall circularity of vehicles. As the policy process enters its final stage, the industry is preparing for the new requirements, considering an opportunity to incorporate more sustainable solutions.

Jennifer Kempf, MobilityScience™ President at Dow, sees firsthand how OEMs and brands are turning policy compliance into a strategic advantage.

“Whether our customers are considering regulations in place now or coming soon, compliance is a driver for sustainability innovation that reduces risk and builds lasting value,” Kempf says. “To support this, Dow is applying a systems approach across the vehicle lifecycle, from material design and component engineering to recycling infrastructure and end-of-life recovery.”

Dow works with automakers and suppliers to design, test, and refine sustainable solutions in real-world production environments, ensuring materials meet performance expectations. A recent collaboration between JLR, automotive seating leader Lear, and Dow is an example of how partnerships within the industry are vital to advancing innovation.

Case Study: Turning Regulation into Results with Lear and Dow

Lear’s FlexAir™ technology is a polyethylene elastomers-based seat cushion that enables recyclability. Lear highlights its potential to reduce CO₂ emissions by up to 50% and vehicle weight by as much as 20%, all while maintaining exceptional comfort. Lear collaborated with Dow on the materials solution for its FlexAir™ technology.

By working together, Lear pioneered proprietary manufacturing processes to extrude, cut, and form the 3D Loop material, made from Dow’s INFINAIR™ Polymers for Loop Technology, into seat cushions while also developing new trim-attachment methods that preserve a single-material system to support recyclability. This new material is not only a sustainability achievement but also a strategic differentiator for OEMs seeking tangible, marketable progress on their commitments.

Lear advanced the technology into cushions with complex, eye-catching geometries and engineered zoned comfort support.

“This collaboration enabled us to achieve a shared goal: delivering sustainable innovations that meet the expectations of our clients and regulatory bodies, without compromising on quality, and aligned with our circularity mindset,” said Dave Withey, Technical Specialist - Seating Innovation & Comfort, JLR.

Dow’s MobilityScience™ team works alongside OEMs and suppliers to advance new materials and products that meet voluntary commitments and legislative requirements. These include recycled thermoplastics for use in bumpers and door panels, to a low volatiles leather alternative that is up to 40% lighter than PVC leather.

Policy can raise the bar for the automotive sector, and open the door to differentiation, value creation, and leadership.

To learn more about these and other innovations, visit Dow’s MobilityScience™ hub