Global automaker Stellantis is announced a new joint venture with metal recycling specialist Galloo to develop a more circular economy on its way to becoming greener throughout its entire business by 2030. Together, Stellantis and Galloo intend to implement a service to recycle end-of-life vehicles (ELVs) from the former’s brands, and possibly other automakers.
Although it took some time, Stellantis is finally coming around on electrification and is embracing adjacent business strategies to support a cleaner and more efficient way of producing vehicles. In addition to multiple projects to produce EV batteries, Stellantis has set its sights on the North American EV market in particular, promoting its electrified Ram and Jeep marques hard.
The company has already shared a business plan called “Dare Forward 2030,” in which 50% of US vehicle sales and 100% of European sales are to be BEVs by the end of the decade. Furthermore, Stellantis has vowed to become entirely carbon neutral by 2038.
To get there, Stellantis is focusing on circular economy strategies using the following ideas: reman, repair, reuse, and recycle. That last part is when Galloo comes in and brings with it 85 years of experience.
Stellantis to recycle vehicles throughout Europe
According to Stellantis, the joint venture with Galloo is not a done deal just yet, but the two parties have each signed a Memorandum of Understanding that now enables exclusive negotiations to form said joint venture focused on end-of-life vehicle (ELV) recycling.
Together, Stellantis and Galloo plan to work with authorized treatment facilities to collect ELVs from their final owner, then use those cars for parts that can be reused, remanufactured, and or recycled. Stellantis senior vice president for global circular economy Alison Jones spoke:
Making it easy for customers to recycle their end-of-life vehicles is a crucial element to reduce the environmental impact of our vehicles. Returning 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.
The Stellantis-Galloo joint venture is expected to begin ELV recycle services before year’s end, beginning in France, Belgium, and Luxembourg before expanding across Europe. The companies also shared that its services will be open to other automakers, not just Stellantis brands. With its latest JV in motion, Galloo adds a third major automotive brand to its vehicle recycling programs. Per its CEO Rik Debaere:
We are delighted to announce a new step forward in our long relationship first with Peugeot and Citroën, 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 leve. Together with Stellantis, we are driving innovation and ensuring a more sustainable future for all.