Resource Circulation

Resource Circulation Initiatives at Honda TradingBuilding the Foundation for a Circular Economy to Achieve Truly Sustainable Mobility Manufacturing

At Honda Trading, we are committed to “Resource Circulation,” an initiative to establish a circular economic model aimed at realizing a sustainable society. This initiative contributes to Honda’s goal of achieving “100% sustainable material usage,” as part of its vision for Zero Environmental Impact Society.
Leveraging our strengths in managing the entire process from raw material supply to recycling, we are intensively working to build an economically viable circular value chain that supports this vision.

What Resource Circulation Means to Us

Resource circulation refers to a system where resources discarded after product use are reused as raw materials for new products. This approach aims to shift from a linear mass-consumption economy to a circular economy.
At Honda, achieving resource circulation involves five key initiatives, including “Business Innovation” and “Advancements in Recycling Technology.” Among these, Honda Trading places particular emphasis on building a “Circular Value Chain,” which serves as the backbone of a circular economy.

Specifically, in automobile manufacturing, we are working toward “horizontal recycling” (Car-to-Car Recycling), which involves reusing key raw materials such as steel, aluminum, and resin. This initiative goes beyond simple recycling, encompassing the development of infrastructure to efficiently recover and reprocess end-of-life vehicles into reusable resources.

Toward Realizing Car-to-Car Recycling

Currently, approximately 90% of the raw materials used in automobile manufacturing rely on newly extracted resources, and many of the materials from dismantled end-of-life vehicles are diverted to other industries.
Honda Trading is advancing technical studies to achieve Car-to-Car Recycling, where steel, aluminum, resin, and other materials recovered from end-of-life vehicles are reused in automobile manufacturing. We are also working on building supply chains to recover these vehicles, tackling the challenge from multiple angles.

One major challenge in realizing Car-to-Car Recycling is the dismantling process for end-of-life vehicles. Many of the vehicles being dismantled today were manufactured over 15 years ago and were not designed with recycling in mind. As a result, reprocessing these vehicles requires significant effort and cost, as well as the development of entirely new know-how on how to dismantle vehicles to recover high-quality materials. Honda Trading is leveraging its expertise in raw material handling to collaborate with dismantling partners, solving these challenges one by one.
Additionally, to enhance the value of recycled materials, we must balance the increased effort required for dismantling with cost considerations. Determining the right balance between market-appropriate dismantling outcomes and associated costs is a critical role we play in building this infrastructure.

A Commitment to Building the Future

Resource circulation cannot be achieved by Honda Trading or the Honda Group alone. The key lies in collaboration across industries and sectors.
Guided by Honda’s key mindset of “mutual prosperity,” we aim to create a truly sustainable business model where all stakeholders benefit, rather than one party profiting at the expense of others.

Moreover, connecting the “loop” of automobile recycling is not something that can be accomplished overnight.
Realizing a circular society is one of our most important sustainability challenges, and we are committed to tackling it with a long-term perspective and a sense of urgency to act now.
Resource circulation is not just an environmental initiative; it is also about building the foundation for next-generation business. As the automotive industry transitions to electrification, the raw materials, components, and supply chains we handle will undergo significant changes.
Anticipating these changes, we remain dedicated to the pursuit of a sustainable, circular society.

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