What is Stellantis' plan?
The automaker announced today that it has signed a memorandum of understanding with Galloo, a leading European vehicle recycler. The companies aim to create a joint venture that specializes in recycling older vehicles. Stellantis believes that integrating parts and materials from end-of-life vehicles back into its value chain will help preserve the planet's limited resources and contribute to its goal of achieving carbon neutrality by 2038.
How will the process work?
Under the joint venture, vehicle owners will be able to drop their vehicles off at a dismantling center. At these centers, the parts of the vehicles will be sorted and categorized based on their condition. Parts that are still functional will be resold, while those that require refurbishment will be repaired before being made available for resale. Parts that cannot be repaired or resold will be recycled to extract valuable materials for further use.
What are the benefits for Stellantis?
Stellantis expects to generate revenue from this joint venture. The recycling centers will contribute to its "circular economy" portfolio, from which the company aims to earn $2 billion by 2030. With the expansion of the joint venture, Stellantis predicts a tenfold increase in recycling revenues and a fourfold increase in parts revenue. Although specific financial targets for the joint venture plants have not been disclosed, Stellantis is confident in the growth potential of this initiative.
Where will the recycling plants be located?
The initial recycling plants, established in partnership with Galloo, will be located in Belgium, Luxembourg, and France. Stellantis plans to expand across Europe, with one of the centers being opened at its Mirafiori factory in Italy. This strategic expansion will enable more vehicle owners across Europe to benefit from the recycling and refurbishment services offered by Stellantis and its partners.
Who is involved in the partnership?
Stellantis has expressed its excitement about the joint venture with Galloo, highlighting their longstanding partnership with Peugeot and Citroën. Rik Dabaere, Galloo's CEO, shares this sentiment, stating, "We are thrilled to announce this new step in our partnership with Peugeot and Citroën, as well as with Stellantis, and to continue opening avenues towards sustainable and responsible business activities by giving a whole new meaning to recycling end-of-life vehicles."
Source: Stellantis
