Stellantis N.V (NYSE: STLA) (Euronext Milan: STLAM) (Euronext Paris: STLAP) and the French nuclear fuel firm Orano recently formalized a partnership to create a joint venture focused on recycling end-of-life electric vehicle batteries and scrap materials from factories in Europe and North America.
The memorandum of understanding was announced on Tuesday and aims to enhance Stellantis’ presence in the electric vehicle battery supply chain by securing access to crucial resources like cobalt, nickel and lithium, essential for electric vehicle production and the broader energy transition.
Orano’s technology enables the recovery of all materials from lithium-ion batteries and the production of new cathode materials.
These reclaimed materials, often referred to as “black mass” or “active mass,” can be further refined at Orano’s planned hydrometallurgical plant in Dunkirk, France, to be reused in new batteries, promoting the principles of a circular economy.
Orano’s technology boasts remarkable recovery rates of metals, exceeding 90 per cent, which is crucial for meeting the recycling rate requirements set by the European Commission for electric vehicle batteries.
Given the increasing global demand for strategic metals and Europe’s strategic reliance on these materials, Orano is a significant player in the integrated value chain, from battery recycling to cathode material production.
The new venture will help Stellantis’ partners, its after-sales network and other original equipment manufacturers with a solution to manage end-of-life batteries and scrap from gigafactories.
Production will begin in the first part of 2026, reusing existing Stellantis assets and facilities. Investments to reskill and upskill Stellantis and Orano employees will open sustainable perspectives for people in their new assignments.
Within Stellantis’ Dare Forward 2030 strategic plan, its circular economy business unit is striving to boost recycling revenues tenfold and reach a total of over €2 billion in circular economy revenues by 2030.
Stellantis is making steady progress towards its goal of becoming a carbon-neutral corporation by 2038, encompassing all emissions categories, with a commitment to offsetting the remaining emissions at a single-digit percentage level.
“We are delighted with this partnership with a major player such as Stellantis to work together in the recycling of used electric batteries,” Orano’s director of innovation Guillaume Dureau said in a statement.
“We are proud to bring our expertise and know-how with our innovative and disruptive process which allows a real closed loop,” Dureau added.
“Orano continues its commitment to developing a low-carbon economy with the recycling of strategic materials for the energy transition and the circular economy.”
#Stellantis and @Oranogroup enter an agreement for recycling #ElectricVehicle batteries, to support Stellantis’ sustainable management of #BEV scarce materials and the #StellantisDareForward 2030 strategic plan to become a carbon net zero company by 2038. https://t.co/NK8OOSRCII pic.twitter.com/zZd37hce4w
— Stellantis (@Stellantis) October 24, 2023