#South Korea #Seoul #Battery Recycling #LG Energy #Derichebourg

LG Energy Solution and Derichebourg Team Up for Battery Recycling

In a significant move toward promoting sustainability, LG Energy Solution has announced a joint venture with Derichebourg, a leading French recycling company. This partnership aims to build a cutting-edge battery recycling plant in Bruyères-sur-Oise, located in the northern Val-d'Oise region of France. The construction of this state-of-the-art facility is set to commence in 2026, with operations expected to begin in 2027.

The new plant will focus on the pre-processing of battery waste, which includes the discharging, dismantling, and shredding of scraps generated during battery production, as well as the collection of end-of-life electric vehicle (EV) batteries. This initiative marks LG Energy Solution's first foray into battery recycling in Europe, and the facility is anticipated to have an impressive processing capacity of over 20,000 tons annually at full operation.

One of the key components of this recycling process is the extraction of 'black mass,' a valuable substance that comprises critical battery raw materials such as lithium, nickel, and cobalt. These materials are essential for the production of new batteries, thereby fostering a closed-loop system that optimizes resource usage and minimizes waste.

Under the joint venture agreement, LG Energy Solution will supply battery scrap from its facility in Poland, while Derichebourg will contribute end-of-life batteries collected from France and neighboring regions. This collaborative approach is poised to enhance the stability of raw material sourcing and bolster the competitiveness of LG Energy Solution's value chain, reinforcing the sustainable framework of battery recycling in Europe.

The significance of this partnership is underscored by the upcoming EU Battery Regulation, which will mandate a minimum level of recycled content in batteries sold in Europe starting in 2031. By establishing this collaboration, the two companies are proactively addressing regulatory requirements while supporting automotive manufacturers seeking to develop closed-loop battery recycling systems that encourage a circular economy.

Derichebourg operates over 200 collection sites in France, along with more than 285 locations across the globe. The joint efforts between LG Energy Solution and Derichebourg are expected to deepen their strategic partnership and expand their influence in the battery recycling sector.

According to Chang Beom Kang, the Chief Strategy Officer at LG Energy Solution, “This collaboration enables us to secure a stable and cost-competitive supply of recycled battery materials from the advanced processing of end-of-life batteries and battery scrap. This initiative will also significantly enhance the value we deliver to customers in the recycling sector.”

On the other side of the partnership, Abderrahmane El Aoufir, CEO of Derichebourg, emphasized the importance of this venture: “This partnership fully supports our ambition to develop industrial solutions with a high environmental added value, while strengthening the local roots of our activities.”

In conclusion, LG Energy Solution's strategic alliance with Derichebourg not only paves the way for a pioneering recycling facility in Europe but also reinforces a commitment to sustainability within the expanding electric vehicle industry. As both companies prepare to embark on this journey, the initiative stands as a testament to the importance of collaboration in achieving environmental goals while driving economic growth.