Stellantis (NYSE:STLA) announced Tuesday the automaker’s plans to join with French nuclear fuels firm Orano to recycle used electric vehicle batteries and scrap from factories.
The two companies announced, in a joint statement, the signing of a memorandum of understanding, paving the way for the establishment of a joint venture, pending the finalization of formal documentation.
According to the statement, this agreement will enable Stellantis, the parent company of various brands such as Peugeot, Fiat, and Jeep, to acquire further access to the crucial resources of cobalt, nickel, and lithium. Resources deemed essential for the advancement of electrification and the ongoing energy transition.
According to the announcement, Orano's technology facilitates the complete retrieval of all components utilized in lithium-ion batteries, achieving metal recovery rates that can surpass 90%. Additionally, the technology enables the production of fresh cathode materials.
Under the joint venture, the focus will be on the manufacturing of materials commonly referred to as 'black mass' or 'active mass'. These materials will undergo refinement in a new facility situated in Dunkirk, France. The primary objective is to ensure that these materials can be effectively reused in batteries, thereby establishing a closed-loop system within a circular economy framework.
Shares of STLA are down 0.77% in early trading Tuesday morning.