BASF and Porsche, together with technology partner Best, have completed a pilot project that chemically recycles automotive shredder residue (ASR) into new polyurethane steering wheels. This breakthrough offers a solution for complex plastic waste streams that are currently incinerated, providing a new source of circular raw materials for automotive and other industries seeking to meet EU recycled content mandates.
Pilot project details
The project successfully processed a waste stream consisting solely of shredder residues supplemented with biomass from renewable sources. Using a gasification process, the technology partner Best converted these mixed plastic wastes into synthetic crude oil (syncrude). This syncrude then replaced fossil feedstocks in BASF's integrated production network to produce a polyurethane formulation.
Quality and application
The resulting material was used to manufacture steering wheels meeting new-part quality standards, including stringent safety requirements for automotive components. This high-quality output is often unattainable through conventional mechanical recycling, making chemical recycling a valuable complementary option for manufacturers.
What buyers should watch
For chemical buyers in automotive, coatings, and plastics sectors, this pilot demonstrates a viable pathway to incorporate post-consumer waste into high-performance applications. The mass-balance approach allows attribution of recycled content without compromising product specifications. Companies sourcing polyurethane or other engineering plastics should monitor BASF's commercial scaling plans, as this technology could expand availability of certified circular materials.
Compliance and logistics signals
The EU's planned minimum recycled plastic content in vehicles is driving innovation in chemical recycling. This project shows that ASR, a previously non-recyclable waste stream, can now be valorized. Importers and distributors of automotive plastics should prepare for increased demand for chemically recycled feedstocks and ensure their supply chains can accommodate mass-balanced materials.
China sourcing context
While this pilot is based in Europe, the technology has global implications. Chinese automotive and chemical companies may seek similar partnerships to meet domestic circular economy goals. For overseas buyers sourcing from China, expect growing interest in chemical recycling as a means to access high-quality recycled plastics for export-oriented manufacturing.
Source: Read the original report | Published: September 29, 2025