Japan's Auto Giants Plan Car-to-Car Recycling by 2035

Six top firms unite to close the loop on car waste with full material reuse

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Six major Japanese firms, including DENSO Corporation, Toray Industries, Honda Motor, and others, have joined forces to overhaul vehicle recycling. Under the newly formed BlueRebirth Council, announced on June 30, 2025, the group aims to build a fully circular "Car-to-Car" recycling system by 2035.

Today’s recycling methods depend heavily on shredding vehicles and then sorting out usable materials—an inefficient, labor-intensive process that often fails to deliver the purity and volume of recycled material manufacturers need. By shifting toward precision dismantling, the Council is betting on automated, AI-guided disassembly robots that can navigate complex vehicle structures with minimal manual intervention.

Beyond increasing material recovery rates, this approach will also target the chronic labor shortages and tough working conditions plaguing the sector. Automation could ease these pain points while boosting workplace safety and consistency.

From waste to resource loop

In addition to this smarter dismantling, the Council is also developing a digital backbone that tracks each material’s life cycle, from initial production to its eventual reuse. By building an integrated data platform to monitor material provenance and environmental impacts, the group hopes to secure more reliable supply chains for recycled content and support automakers’ long-term sustainability strategies.

The collaboration has rallied about 30 companies under one umbrella. DENSO’s Executive Officer Hirotsugu Takeuchi chairs the council, with REVER Corporation's President Naoto Matsuoka serving as vice chair. Heavy hitters like Toyota Motor Corporation, Nomura Research Institute, and materials innovator Toray Industries are also playing key roles on the executive committee.

Redefining recycling as a core component of manufacturing, not an end-of-life afterthought, the BlueRebirth Council is setting a new global benchmark in circular production—transforming yesterday’s scrap into tomorrow’s supply chain and supporting broader industry efforts to cut carbon emissions and reduce resource consumption by 2035.

Environment + Energy Leader