10 September, 2026
FROM REGULATORY REQUIREMENT TO OPPORTUNITY: HOW THE NEW EU CIRCULARITY REGULATION TRANSFORMS VEHICLE MANUFACTURING
The regulatory framework in the automotive industry is taking a decisive step toward decarbonization and sustainability. The European Union’s approval of the regulation requiring at least 25% recycled plastic in new cars within 10 years (with an intermediate milestone of 15% at 6 years) will transform design and production processes across the entire automotive value chain.
Furthermore, the regulation mandates that a significant portion of these materials must originate from end-of-life vehicles (ELVs) in a closed-loop system, paving the way for the European Commission to evaluate similar requirements for key materials such as aluminum and steel.
The Challenge of Technical Components: Beyond Traditional Materials
For automotive manufacturers (OEMs) and Tier 1 suppliers, this legislation is not merely a compliance obligation; it represents a true catalyst for redesigning vehicles, integrating solutions with a lower ecological footprint, and optimizing component architecture right from the initial prototyping stages.
As vehicle platforms evolve, particularly with the accelerated transition toward electric mobility (EV), maintaining a balance among weight reduction, thermal and acoustic insulation, electromagnetic interference (EMI) shielding, and material circularity becomes essential.
Meeting European environmental targets requires partnering with strategic suppliers capable of adapting their methodologies to the new demands of the circular economy. In this scenario, the key lies in delivering lightweight, highly efficient, and recyclable solutions right from the source.
Neklar Solutions: Supporting OEMs on the Road to Decarbonization
At Neklar, as a global leader in thermal, thermo-acoustic, and electromagnetic automotive insulation, we understand our customers’ regulatory challenges and proactively address them. We develop thermo-acoustic metal stamping and thermal management technologies that not only enhance vehicle performance but also directly contribute to reducing the industry’s ecological footprint.
How We Accelerate Our Customers’ Evolution:
- Agile and Flexible Methodology: Our comprehensive approach spans product design, simulation, fast prototyping, and hands-on testing, allowing components to adapt rapidly to new weight and recyclability standards without compromising safety or costs.
- Sustainability and Circular Economy: We develop ultra-optimized aluminum insulation systems and EV battery solutions that help maximize powertrain energy efficiency while reducing CO₂ emissions across the vehicle’s entire life cycle.
- Advanced and Automated Manufacturing: Through lean stamping processes and full automation, we ensure operational excellence backed by the highest standards required by international car manufacturers.
To address these evolving challenges, Neklar provides integrated solutions that mitigate heat, reduce noise, and eliminate electromagnetic interferences while optimizing total manufacturing costs. This approach empowers OEMs and Tier 1 suppliers to build a more sustainable future through continuous innovation.
Leading the Future of Sustainable Mobility
European regulations are redefining automotive design. The integration of sustainable materials and responsible manufacturing processes will define the competitive advantage for OEMs and Tier 1 suppliers in the coming years.
At Neklar, we turn regulatory challenges into development opportunities, offering tailored solutions that drive the electrification and decarbonization of the automotive industry. By combining expertise in material selection, advanced stamping processes, and comprehensive testing, Neklar enables OEMs and Tier 1 partners to optimize thermal and acoustic insulation across next-generation vehicle platforms, accelerating the journey toward cleaner, more sustainable mobility.



