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, 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:

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, the budget is €2,000,000, it is a single-stage call, opening on 2025-05-06 and closing on 2025-09-04, with contributions around €2,000,000 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.

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.