Stellantis N.V. and leading metals recycler Galloo 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 automakerโs 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.
โMaking it easy for customers to recycle their End-of-Life Vehicles is a crucial element to reduce the environmental impact of our vehicles,โ said Alison Jones, Stellantis Senior Vice President for Global Circular Economy. โReturning 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.โ
โWe are delighted to announce a new step forward in our long relationship first with Peugeot and Citroรซn, 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,โ said Rik Debaere, Galloo CEO. โTogether with Stellantis, we are driving innovation and ensuring a more sustainable future for all.โ
Recycling is an integral part of the Stellantis Circular Economy Business Unitโs 4R strategy โ 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 euro 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 percent green materials in new vehicles by 2030.
The transaction is subject to agreement on definitive documentation and customary closing conditions, including regulatory approvals.
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