Stellantis and Galloo have announced the formation of a joint venture to recycle end-of-life vehicles (ELVs) in Europe. The joint venture, called Automotive Cells Company Recycling (ACCR), will aim to recover and reuse valuable materials from ELVs, such as metals, plastics, and batteries.
The joint venture will leverage the expertise and experience of both partners, as well as their existing facilities and networks. Stellantis is one of the world's leading automakers, with 14 iconic brands and a strong presence in the electric vehicle (EV) market. Galloo is one of Europe's largest recyclers, with more than 40 sites across Belgium, France, and the Netherlands and a capacity to process over 1.2 million ELVs per year.
The joint venture will focus on two main objectives: to increase the recycling rate of ELVs in Europe and to create a circular economy for EV batteries. According to the European Commission, ELVs generate between 7 and 8 million tonnes of waste per year in the EU, and only about 60% of this waste is recycled or reused. The joint venture aims to increase this rate to 95%, in line with the EU's targets for 2030.
The joint venture will also address the growing demand for EV batteries, which are expected to reach 400 GWh per year by 2030 in Europe. The joint venture will develop a process to recover and reuse the materials from EV batteries, such as lithium, cobalt, nickel, and manganese. These materials can then be used to produce new batteries or other products, reducing the need for mining and imports.
The joint venture will contribute to the sustainability and competitiveness of the European automotive industry, as well as to the environmental protection and social responsibility of both partners. The joint venture will help reduce greenhouse gas emissions, conserve natural resources, create jobs, and support innovation.
The joint venture is expected to be operational by the end of 2023, subject to regulatory approvals and other customary conditions. The joint venture will be based in France, where Stellantis has its headquarters, and will operate across Europe. The joint venture will have an initial investment of €50 million, with Stellantis holding a 50% stake and Galloo holding a 50% stake.
The joint venture's director, Xavier Peugeot, said he was excited about the partnership and the opportunities it will create. "We are proud to join forces with Galloo, a leader in recycling, to create a new European champion for end-of-life vehicle recycling. This joint venture is a strategic step for Stellantis, as it will allow us to enhance our sustainability performance, support our electrification strategy and create value for our stakeholders."
The joint venture's chairman, Pierre Vareille, said he was confident that the joint venture would be a success story for both partners and for Europe. "We are delighted to partner with Stellantis, one of the world's leading automakers, to create a new joint venture that will set new standards for end-of-life vehicle recycling in Europe. This joint venture is a win-win situation for both partners, as it will combine our complementary skills, assets, and networks and create synergies and economies of scale."
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