Joint venture will provide recycling services to manage End-of-Life Vehicles for Stellantis and other automakers
Stellantis N.V. and leading metals recycler Galloo today announced they have signed a Memorandum of Understanding to enter into exclusive negotiations to form a joint venture focused on End-of-Life Vehicle (ELV) recycling as part of the automaker’s continued commitment to build its circular economy activities.
The Stellantis-Galloo joint venture will work with selected Authorized Treatment Facilities to collect ELVs from the last owner, enabling the recovering of parts for reuse, remanufacturing, and recycling. The service is expected to launch at the end of 2023 with an initial focus on France, Belgium and Luxembourg, and then expanding across Europe. The joint venture will offer its services to other automakers.
“Making it easy for customers to recycle their End-of-Life Vehicles is a crucial element to reduce the environmental impact of our vehicles,” said Alison Jones, Stellantis Senior Vice President for Global Circular Economy. “Returning parts and materials to the value chain preserves scarce resources and helps our drive to reach carbon net zero by 2038. We look forward to implementing the program this year and quickly expanding.”
“We are delighted to announce a new step forward in our long relationship first with Peugeot and Citroën, and now Stellantis, as we continue to lead the way in sustainable and responsible business by taking End-of-Life Vehicle recycling to a next level,” said Rik Debaere, Galloo CEO. “Together with Stellantis, we are driving innovation and ensuring a more sustainable future for all.”
Recycling is an integral part of the Stellantis Circular Economy Business Unit’s 4R strategy – Reman, Repair, Reuse, Recycle. The ELV recycling program will contribute to increasing recycling revenues 10-fold and parts revenues 4-fold by 2030, as compared to 2021, and the target to generate more than €2 billion in revenues in 2030, as outlined in the Stellantis Dare Forward 2030 strategic plan. The ELV recycling program also supports the Stellantis goal of having 40% green materials in new vehicles by 2030.
The transaction is subject to agreement on definitive documentation and customary closing conditions, including regulatory approvals.
SOURCE: Stellantis
Keyword: Stellantis and Galloo to form joint venture for End-of-Life Vehicle recycling