Accelerating the circular transformation of the EU automotive industry

The grant titled "Accelerating the circular transformation of the EU automotive industry" is part of the Horizon Europe program and aims to enhance the transition to a circular economy within the automotive sector. This opportunity focuses on promoting coordination, innovation, and resource efficiency, specifically through Coordination and Support Actions (CSAs).

Eligible applicants are expected to form consortia that comprise at least three independent legal entities from different EU Member States or Associated Countries. These consortia can include research institutes, universities, small and medium-sized enterprises (SMEs), large enterprises, and public-private partnerships. The funding is structured as a HORIZON Lump Sum Grant, making it a straightforward monetary grant.

The grant specifically targets the automotive industry, emphasizing the circular economy, recycling, and advanced manufacturing practices. Geographic eligibility is limited to EU Member States and Associated Countries, with an increasing emphasis on sustainability and environmental responsibility.

The projects funded under this grant are expected to demonstrate scalable solutions for reducing waste and enhancing resource recovery, aligning with the European Green Deal’s climate neutrality objectives. The application process is a single-stage open call, with submissions opening on May 6, 2025, and closing on September 4, 2025. The total budget for proposals is likely to fall within the range of €1 million to €5 million, depending on the quality of proposals and budgetary constraints.

Success rates for Horizon Europe grants typically range between 10% to 39%, with co-funding requirements for this grant generally considered unnecessary as it will cover full project costs without requiring matched funding.

Proposals under this grant should address several key areas, including stakeholder engagement in mapping existing projects and strategies within the automotive value chain, a comprehensive analysis of the life-cycle value chain ecosystem, the integration of AI-based tools to enhance material loops, and the assessment of the economic and environmental impacts of a circular automotive industry.

Moreover, the call calls for the conceptualization of a potential "Recycling Factory of the Future" project, which would support viable business models, thus fostering a collaborative approach to industrial transformation toward circularity.

In summary, this grant is a strategic effort to support the EU automotive industry's shift to a circular economy. It seeks innovative and collaborative projects aimed at improving recycling technologies, enhancing supply chain resilience, and significantly reducing the overall environmental footprint of the automotive sector.

The EU Funding and Tenders Portal presents a Horizon Europe funding opportunity focused on accelerating the circular transformation of the EU automotive industry. The call, HORIZON-CL5-2025-04-D5-07, falls under Cluster 5 of the Horizon Europe program and seeks Coordination and Support Actions (CSA) to promote circular economy principles within the automotive sector. The grant agreement will be a HORIZON Lump Sum Grant. The call opened for submissions on May 6, 2025, with a deadline of September 4, 2025, at 17:00 Brussels time.

The expected outcomes of projects funded under this topic include:

Widespread and shared understanding of circular economic principles across the full life-cycle value chain of road transport.
Increased European resource sovereignty, a reduced environmental footprint, and strengthened competitiveness of the European automotive value chain.
Definition of requirements and boundaries for a European circular economy ecosystem in the automotive sector, potentially leading to future standards.
Increased development and adoption of product passports and digital twins to optimize reuse, remanufacturing, and vehicle recycling.
Development of a roadmap for European Pilot Projects (lighthouses) to accelerate industrial transformation towards circularity.

The scope of the proposals should address the following aspects, focusing on end-of-life strategies:

Stakeholder Engagement: Identify and involve stakeholders and industrial sectors, supporting full life-cycle value chain communities from European to regional levels. Map ongoing projects and remanufacturing processes, and analyze existing industrial strategies and roadmaps within the automotive value chain. Design and implement a strong stakeholder engagement process.
Value Chain Analysis: Analyze the full life-cycle value chain ecosystem, identifying bottlenecks, gaps, and hurdles for transformation towards a circular automotive industry.
AI-Based Tools and Processes: Support the implementation and awareness of AI-based tools and processes for open and closed material, systems, and component loops to increase end-of-life value, re-useability, and re-cyclability of vehicle components and materials.
Impact Assessment: Assess the economic, environmental, and societal impact of a future circular automotive industry, including business cases, investments, contribution to environmental footprint and Green Deal objectives, job creation, and competitiveness. Analyze viable business models along the full life-cycle value chain (9R principles).
Pilot Project Conceptualization: Support the conceptualization of a possible future European Pilot Project (lighthouse) “Recycling Factory of the Future,” including viable business models, analyzing spillovers to other sectors, and outlining a pathway towards its possible implementation.
Digital Enablers: Define and develop possible future product passports and digital twins.

The call specifies several general conditions related to admissibility, eligible countries, financial and operational capacity, evaluation and award processes, and legal and financial setup, all detailed in the Horizon Europe Work Programme General Annexes. Beneficiaries are obligated to ensure open access to new modules, models, or tools developed with EU funding through documentation, model code availability, and input data. Eligible costs will be reimbursed as a lump sum.

Application forms, evaluation templates, model grant agreements, and guidance documents are available on the Submission System and the Funding & Tenders Portal. Additional documents include the Horizon Europe Main Work Programme, the Horizon Europe Programme Guide, the EU Financial Regulation, and guidance on lump sum contributions.

The budget overview lists various HORIZON-CL5-2025-04 topics with their respective budget, stage, opening date, deadline, contributions, and indicative number of grants. For HORIZON-CL5-2025-04-D5-07, the budget is 2,000,000 EUR, it is a single-stage call, opening on 2025-05-06 and closing on 2025-09-04, with contributions around 2,000,000 EUR and an indicative number of 1 grant.

The portal also offers partner search announcements to facilitate collaboration and provides access to topic Q&As and general FAQs for support.

In summary, this Horizon Europe call aims to foster the transition to a circular economy within the EU automotive industry by funding coordination and support actions that promote stakeholder engagement, value chain analysis, AI-based tools, impact assessment, pilot project conceptualization, and the development of digital enablers like product passports and digital twins. The goal is to increase resource sovereignty, reduce environmental impact, and enhance the competitiveness of the European automotive sector.

Eligible Applicant Types: The eligible applicant types are not explicitly stated in the provided text. However, given the nature of Horizon Europe calls, eligible applicants typically include universities, research institutes, SMEs, large enterprises, and other organizations capable of conducting research and innovation activities. The mention of LEAR (Legal Entity Appointed Representative) also suggests that any legal entity validated by the EU can apply.

Funding Type: The primary funding mechanism is a grant, specifically a HORIZON Lump Sum Grant, as indicated by the type of MGA (Model Grant Agreement) being HORIZON-AG-LS. Additionally, the call includes HORIZON Coordination and Support Actions (CSA), HORIZON Research and Innovation Actions (RIA) and HORIZON Innovation Actions (IA).

Consortium Requirement: The text does not explicitly state whether a consortium is required. However, the presence of a "Partner Search" function and the scale of the projects suggest that consortia are often beneficial, if not required, especially for Innovation Actions and Research and Innovation Actions.

Beneficiary Scope (Geographic Eligibility): The primary geographic eligibility appears to be focused on EU member states and associated countries, as indicated by the reference to "non-EU/non-Associated Countries" having specific provisions. The Horizon Europe Programme Guide would provide more specific details on eligible countries.

Target Sector: The program targets the automotive industry, with a specific focus on accelerating the circular transformation of the EU automotive industry. This includes aspects of climate, energy, mobility, resource sovereignty, environmental footprint reduction, and the implementation of circular economy principles.

Mentioned Countries: The text mentions "non-EU countries" and "non-Associated Countries".

Project Stage: The program targets various project stages, including research, innovation, and coordination/support. Innovation Actions (IA) suggest a focus on demonstration and deployment, while Research and Innovation Actions (RIA) focus on earlier-stage research and development. Coordination and Support Actions (CSA) focus on networking, coordination, and dissemination activities.

Funding Amount: The funding amounts vary significantly depending on the specific topic within the call. The budget overview lists topics with budgets ranging from EUR 1,600,000 to EUR 22,500,000. The indicative number of grants per topic also varies, with some topics expected to fund one project and others expected to fund two.

Application Type: The application type is an open call, with a single-stage submission process.

Nature of Support: Beneficiaries will receive money in the form of a lump sum grant.

Application Stages: The application process is single-stage.

Success Rates: The success rates are not explicitly mentioned in the text.

Co-funding Requirement: The text does not explicitly mention a co-funding requirement. However, depending on the specific type of action (IA, RIA, or CSA) and the work program guidelines, co-funding might be required.

This opportunity is part of the Horizon Europe program, specifically within Cluster 5, and aims to accelerate the circular transformation of the EU automotive industry. It encompasses a range of funding instruments, including Coordination and Support Actions (CSA), Research and Innovation Actions (RIA), and Innovation Actions (IA), each with varying budget allocations and expected outcomes. The call focuses on promoting circular economy principles, increasing resource sovereignty, reducing the environmental footprint, and enhancing the competitiveness of the European automotive value chain.

The scope of the call includes identifying stakeholders, mapping existing projects, analyzing the full life-cycle value chain, supporting AI-based tools for material loops, assessing the economic and environmental impact of a circular automotive industry, and conceptualizing a "Recycling Factory of the Future." The call also emphasizes the development of product passports and digital twins.

Eligible applicants include a wide range of organizations, such as universities, research institutes, SMEs, and large enterprises, primarily from EU member states and associated countries. The funding is provided as a lump sum grant, and the application process involves a single-stage submission. The call encourages collaboration and partner search, suggesting that consortia are beneficial for addressing the complex challenges of circular transformation in the automotive sector. The opening date for submissions is May 6, 2025, and the deadline is September 4, 2025.