LG Energy Solution and Derichebourg Form Battery Recycling Joint Venture for Sustainable Future
LG Energy Solution and Derichebourg's Revolutionary Partnership in Battery Recycling
In an age where sustainability is paramount, companies are increasingly seeking innovative ways to reduce waste and promote environmental stewardship. A remarkable stride in this direction has been made by LG Energy Solution, which has announced a joint venture with Derichebourg, a leader in metal waste recycling in France. This partnership aims to address the pressing need for battery recycling, especially in light of the expanding electric vehicle (EV) market.
Establishing a State-of-the-Art Facility
The joint venture will see the construction of a cutting-edge battery recycling plant in Bruyères-sur-Oise, located in the Val-d'Oise region of northern France. Groundbreaking is scheduled for 2026, with operations expected to begin by 2027. This facility will be pivotal, as it will focus on the pre-processing of battery waste, which includes dismantling, shredding, and collecting end-of-life EV batteries. The plant is anticipated to have a processing capacity exceeding 20,000 tons annually at full operation, marking a significant milestone for both companies.
Strengthening Resource Circulation
The black mass—a crucial byproduct from the pre-processing step—will undergo further processing to recover essential battery materials such as lithium, nickel, and cobalt. These recovered materials will subsequently be utilized in LG Energy Solution's battery production, creating a closed-loop resource circulation system within Europe. Such a system is vital not only for resource recovery but also for ensuring stability in raw material sourcing and enhancing overall value chain competitiveness.
Under this collaboration, LG Energy Solution is set to provide battery scrap generated from its manufacturing facility in Poland, while Derichebourg will source end-of-life EV batteries from its extensive network of over 200 collecting sites in France and more than 285 locations globally. This mutually beneficial arrangement signifies a strategic alliance aimed at bolstering the battery recycling ecosystem in Europe.
Navigating Regulatory Changes
The timing of this joint venture is particularly relevant with the upcoming EU Battery Regulation, which mandates the inclusion of a minimum level of recycled content in batteries sold in Europe starting in 2031. The collaborative efforts between LG Energy Solution and Derichebourg are well-aligned with these regulatory requirements and demonstrate how businesses can innovate to meet compliance while also fostering a circular economy that benefits both the industry and the planet.
As the demand for electric vehicles continues to soar, establishing a closed-loop battery recycling system is imperative. This partnership not only addresses the growing need for sustainable disposal of used batteries but also assists car manufacturers in achieving their own recycling goals.
Quotes from the CEOs
The significance of this joint venture is highlighted by the words of Chang Beom Kang, CSO of LG Energy Solution, who stated, “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.”
Abderrahmane El Aoufir, CEO of Derichebourg, echoed similar sentiments, emphasizing that the partnership fully supports their ambition to develop industrial solutions with notable environmental value, reinforcing the local foundations of their operations.
Conclusion
In conclusion, this joint venture between LG Energy Solution and Derichebourg marks a critical step toward creating a sustainable future for battery production and recycling. As we transition into an era where environmental concerns are at the forefront of industry challenges, the efforts made through partnerships like this will undoubtedly pave the way for a greener tomorrow. As they work together to establish a robust battery recycling framework in Europe, both companies are not just addressing current needs but are proactively setting standards for future sustainability in the energy sector.