Carmaker Stellantis announced on June 5 that it has signed a memorandum of understanding with Galloo, a European metals recycler, to form a joint venture to recycle end-of-life vehicles (ELV). The service is expected to start before the end of this year.
According to Stellantis, the joint venture will first operate in France, Belgium and Luxembourg. It will expand across Europe later. The automaker said the new company will cooperate with authorized treatment facilities to collect ELVs from the last owner.
The goal is to reuse, remanufacture, and recycle the unused car components, Stellantis said. The service is slated to begin by the end of 2023 and will open to other automakers.
Alison Jones, Stellantis senior vice president for global circular economy, said returning parts and materials to the value chain preserves scarce resources and facilitates the company's drive to reach carbon net zero by 2038.
According to the announcement, Galloo manages the recovery and reuse of ferrous and non-ferrous metals and certain types of industrial plastics. The company has worked with Peugeot and Citroen. Both are owned by Stellantis now.
Stellantis said the ELV recycling project will increase its recycling revenue 10-fold and parts revenue 4-fold by 2030 compared to 2021. It will also help the carmaker get closer to its target of generating more than EUR2 billion (US$2.14 billion) in revenues in 2030.
Stellantis is striving to have 40% of green materials in its new vehicles by 2030. Therefore, it has made similar recycling efforts in China. In early April, the company signed an MoU with Miracle Oruide Guangzhou Auto Parts Remanufacture to build a recycling network covering engines and EV batteries in China.
Miracle Oruide currently targets the remanufacturing of internal combustion engines, according to an announcement. Its pilot program for electromechanical product refabrication is verified by the Chinese government. Stellantis said at that time it planned to invest in Miracle Oruide and hold 32% of the company's shares based on the MoU.