The global carbon fibre industry was valued at approximately $5.5 billion in 2024, underscoring the scale of potential economic disruption.
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The global carbon fibre industry was valued at approximately $5.5 billion in 2024, underscoring the scale of potential economic disruption.
The European Parliament has proposed a landmark amendment that could significantly impact global automotive and aerospace manufacturing. The amendment, added under a revision to the EU's End-of-Life Vehicles Directive, seeks to classify carbon fibre as a "hazardous material" under European Union law — a first for any government globally. While the health and environmental implications of carbon fibre are still being studied, the proposed classification has sparked concern among industry groups and manufacturers. The global carbon fibre industry was valued at approximately $5.5 billion in 2024, underscoring the scale of potential economic disruption.
The draft legislation aims to include carbon fibre on the EU's existing list of hazardous substances, which currently comprises lead, cadmium, mercury, and hexavalent chromium. These materials are already tightly controlled due to their health and environmental risks and are used only sparingly in high-performance applications, including aircraft and automobiles.
Carbon fibre is prized by automakers and aerospace companies for its strength-to-weight ratio, offering significant weight savings without compromising durability. Its lightweight properties have made it a core material in the construction of sports cars and electric vehicles (EVs), where reducing mass is key to improving range and performance. However, EU regulators have raised concerns over the material’s potential health risks. The European Parliament's amendment is based on findings suggesting that airborne carbon fibre filaments could be harmful if they come into contact with human skin.
If adopted, the proposed ban would take effect in 2029, giving manufacturers several years to phase out the use of carbon fibre in new vehicles. The policy could force major shifts in supply chains and materials engineering, especially in the auto sector, which accounts for up to 20 per cent of global carbon fibre demand.
The ripple effect of the announcement was immediately visible in financial markets. Shares of Japan’s leading carbon fibre producers — Teijin, Toray Industries, and Mitsubishi Chemical — tumbled sharply after news of the amendment surfaced. Together, these three companies account for 54 per cent of the global carbon fibre manufacturing market. European manufacturers, which represent the majority of the remaining market share, are also expected to be significantly affected if the amendment is passed into law.
Industry analysts warn that the proposed legislation could have far-reaching consequences. High-performance sports cars and supercar makers, such as Ferrari, Lamborghini, and McLaren, rely heavily on carbon fibre for chassis and body panel construction. EV manufacturers could also be caught in the crosshairs. Companies like BMW, Hyundai, Lucid Motors, and Tesla have all integrated carbon fibre into various structural and aesthetic elements of their vehicles to improve efficiency and safety.
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