Covestro, Neste and Borealis collaborate to recycle tires into automotive parts

Covestro, Neste and Borealis have signed an agreement to recycle discarded tires into high-quality plastics for the automotive industry. This collaboration aims to enhance circularity in the plastics value chain and automotive applications.

“This project can serve as a blueprint when it comes to establishing circularity in the field of plastics in cars,” explained Jeroen Verhoeven, VP of value chain development for polymers and chemicals at Neste. “It shows how low-quality waste materials can be turned into very high-quality plastics. This is good news for the polymers and automotive industries as well as for the environment.”

The process begins with producer of sustainable fuels Neste converting liquefied discarded tires into high-quality raw materials for polymers and chemicals manufacturing. Borealis, a provide of polyolefin solutions, then processes these raw materials into base chemicals, specifically phenol and acetone, which are supplied to Covestro.

Material company Covestro utilizes these materials to produce high-purity polycarbonates suitable for various automotive parts, such as headlamps and radiator grilles.

The recycled content is attributed via the mass balance approach, for traceability and sustainability throughout the production process, and is certified by ISCC Plus.

The first products from this collaboration are already available, with each partner having produced their initial batch. Beyond polycarbonates, the project may also explore the potential of polyurethanes for automotive interiors. The companies emphasize the importance of scaling up these developments in alignment with future EU regulations, such as the End of Life Vehicles Regulation.

Guido Naberfeld, senior VP, head of sales and market development mobility at Covestro, said, “We are creating options to turn old tires into new car parts again. With that, we are supporting our automotive customers and addressing an increasingly prominent question discussed across the value chain: How to match high-performance materials with recycled content? Projects like this can be the answer.”

“We are demonstrating the importance of value chain cooperation to give new value to waste,” says Thomas Van De Velde, senior VP of base chemicals at Borealis. “We are proud that Borealis, in collaboration with Neste, is able to play a role in this project, providing more sustainable solutions for polymer applications for Covestro and its customers.”

The collaboration will be presented during the PIAE in Mannheim on June 19-20, 2024.