Feasibility Study Launched to Establish 'Recycled Plastic Consolidation Hub' in the Kanto Region for Stable Supply of High-Quality Recycled Plastics for Automotive Use

## Overview
Nine companies—Mitsubishi Chemical Corporation, Takatoshi Kogyo Co., Ltd., Toko Metal Co., Ltd., Refinverse, Inc., Mitsubishi Electric Corporation, digglue Inc., Japan Polypropylene Corporation, Rhombic Corporation, and Toyota Motor Corporation (Domatics) as a collaborating partner—are launching a feasibility study (FS) to build a stable supply system for high-quality recycled plastics for automotive and other applications. The study integrates the collection, sorting, recycling, material design, and traceability of used plastics. This FS was selected for the 'FY2025 Supplementary Budget Feasibility Study Project for Constructing a Stable Supply System for Recycled Plastics for Automotive and Other Uses' by the Ministry of the Environment.

## Background
In recent years, the automotive sector, led by Europe, has faced strengthened regulations on the use of recycled materials, creating an urgent need for stable supplies of high-quality recycled materials. In Japan, such a system is not yet well-developed, and the utilization of recycled plastics in automotive manufacturing remains limited. Therefore, the nine companies aim to establish a 'Recycled Plastic Consolidation Hub' that utilizes digital technology and AI to ensure highly advanced sorting and traceability, creating a business model that fully repurposes collected plastics into high-quality raw materials.

## FS Scope (Until February 2027)
1. Specification of concepts for introducing digital technology/AI into advanced sorting processes.
2. Feasibility research on material recycled materials meeting automotive quality requirements.
3. Feasibility research on chemical recycling for plastics unsuitable for material recycling.
4. Organization of data linkage requirements to ensure traceability.
5. Evaluation of economic rationality and estimation of the effect on scaling recycled plastic supply.
6. Creation of an implementation roadmap for phased introduction.

## Features of the FS
- Integrated Supply Chain through Collaboration: Upstream (collection/sorting) and downstream (material design/supply) operators collaborate to examine quality, volume, cost, and origin.
- Combination of Advanced Sorting and Material Design: Meeting high-quality automotive standards through integrated technical development.
- Optimal Recycling Utilization: Maximizing resource value by sorting materials appropriately between material and chemical recycling.
- Reliability Enhancement via Traceability: Visualizing environmental value from raw material to recycled product.

## Future Outlook
After the completion of this FS, the partners plan to build a system with a view toward moving into demonstration projects or a commercialization phase.