Hitachi and Toei Launch AI-Driven Marketplace for Recycled Plastic Materials

Hitachi and Toei Join Forces in Recycled Materials Marketplace

In a significant step towards tackling pressing environmental challenges such as climate change and plastic pollution, Hitachi Ltd. and Toei Co., Ltd. have announced the initiation of a proof-of-concept for an AI-powered marketplace aimed at enhancing the formulation of recycled plastics. Scheduled to begin in November, this innovative project is a part of Hitachi's broader efforts to bolster the circular economy and promote the use of recycled materials.

Background of the Initiative

As global environmental issues intensify—with concerns over biodiversity loss and marine plastic pollution—society is increasingly turning its attention towards circular economy solutions. In Japan, the introduction of the "Laws for Promoting Resource Circulation Related to Plastics" in 2022 has prompted a surge in the demand for recycled materials. However, challenges persist in the production and quality of recycled plastics, which often fall short of the mechanical properties and thermal characteristics of virgin materials. As a result, their application in manufacturing processes remains limited.

Developing recycled plastics traditionally relies on engineers' past knowledge and experience, leading to trial-and-error approaches. Many companies lack in-house engineers dedicated to recycled material development, making data-driven advancements essential for future growth.

Details of the Proof-of-Concept

Hitachi's collaborative effort leverages its Lumada solution, which incorporates digital technologies such as Materials Informatics (MI) and generative AI, along with Hitachi High-Technologies’ expertise in quality analysis and a vast knowledge of the material supply chain. The goal is to create a marketplace that effectively analyzes recycled materials in line with user needs.

Toei, a recycling specialist with over 20 years of experience, will contribute its extensive knowledge in the recycling process—from shredding and sorting to washing and pelletizing. Together, they will verify the marketplace's functionalities, focusing on quality analysis of recycled materials and providing formulation recipes that meet industry standards.

Key Features of the Marketplace

The proof-of-concept will assess the quality of recycled plastics quantitatively and utilize AI and MI to propose optimal formulation recipes. This endeavor will specifically evaluate Polypropylene (PP) collected from Toei's home appliance recycling initiative. The two main phases include:

1. Quantitative Quality Analysis: Utilizing Hitachi High-Technologies' analytical tools, the first phase will involve measuring variability in the quality of recycled PP and determining whether it meets essential specifications for mass production.
2. AI-Driven Recipe Proposal: The second phase will engage Hitachi’s unique machine learning model to draw from a database of experimental data related to recycled plastics and suggest the most effective mixture of recycled and virgin materials, alongside potential additives, to achieve desired material properties.

Future Prospects

By fiscal year 2026, Hitachi aims to officially launch the "Recycled Materials Marketplace," integrating the data generated from this proof-of-concept. This initiative embodies Hitachi's commitment to transforming data into value using AI, thereby addressing both customer requirements and societal challenges. Furthermore, it supports Toei's mission to champion the circular economy and advance sustainable growth within the recycled materials sector.

Upcoming Showcase

On November 12-14, 2025, a prototype version of the functionality being validated through this proof-of-concept will be showcased at the "Sustainable Materials Exhibition" during the Highly-Functional Material Week held at Makuhari Messe, Japan.

Conclusion

This collaboration between Hitachi and Toei marks a promising advance in the recycling industry, showcasing how innovative technologies like AI can facilitate the more effective use of recycled materials. As organizations continue to tackle environmental issues, initiatives like the Recycled Materials Marketplace can play a crucial role in fostering a sustainable future.