In a brief press release, the automobile giant Stellantis announces that it is ending its partnership with the firm Orano concerning a project for a recycling plant for electric car batteries. The motives remain unclear at this time.
No battery recycling plant between Stellantis and Orano
Announced in October 2023, the partnership between Stellantis, one of the world’s leading automobile manufacturers, and Orano, a major player in the processing of radioactive materials and recycling, should lead to the creation of a factory dedicated to the recycling of lithium-ion batteries by 2026. Thus, this factory would have made it possible to recover critical battery components, and above all, precious metals, to reintegrate them into the production chain of new batteries. Under the terms of the project, Orano was to refine these metals to transform them into “black mass”, a key element in the manufacture of new batteries. Furthermore, this process was part of a circular economy logic, making it possible to limit dependence on virgin raw materials while reducing the environmental footprint of the automotive sector.
However, Stellantis and Orano announced the premature end of this project, without providing detailed explanations on the reasons for this rupture. In a joint statement, the two companies indicate that they are not finalizing their joint venture. Despite everything, they are exploring other business opportunities together, due to the quality of Orano’s recycling process. However, this partnership was seen as a response to sustainability issues in the automotive industry, and in particular to the challenges posed by the end of life of electric vehicle batteries.
Recycling, a crucial challenge
Battery recycling has become a strategic issue for the automobile industry, particularly with the rise of electric vehicles. These batteries, mainly cmade of lithium, cobalt and nickel, represent a high environmental and financial costhence the importance of their recycling. In addition, the raw materials necessary for their production are limited and their extraction poses major ecological problems. In Europe, The electric vehicle market is experiencing a slowdown, with sales falling by 43.9% in August 2024, notably due to reduced subsidies in certain countries.
The abandonment of this project could therefore have significant repercussions for both companies. For Stellantis, this likely means a reassessment of its strategy. As for Orano, this decision could slow down its diversification ambitions in the field of battery recycling, although the company is banking on the quality of its recycling processes.
Related News :