Multinational automaker Stellantis (NYSE:STLA), alongside leading metals recycler Galloo revealed Monday, that the two companies have signed a Memorandum of Understanding to enter into exclusive negotiations to form a joint venture with a focus on End-of-Life Vehicle (ELV) recycling as part of the automaker’s continued commitment to build its circular economy activities.
The collaboration will work with selected Authorized Treatment Facilities to collect the vehicles from their final owners, with the aim to efficiently recover components for purposes such as reuse, remanufacturing, and recycling.
Stellantis and Galloo anticipate the launch their new service will begin at the end of 2023 with an initial focus on France Belgium, and Luxembourg. Subsequently, the venture plans to expand its operations across Europe. Notably, the joint venture will extend its services to cater to other automakers as well.
“Making it easy for customers to recycle their End-of-Life Vehicles is a crucial element to reduce the environmental impact of our vehicles,” said Alison Jones, Stellantis Senior Vice President for Global Circular Economy. “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.”
“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 level,” said Rik Debaere, Galloo CEO. “Together with Stellantis, we are driving innovation and ensuring a more sustainable future for all.”
The transaction is subject to agreement on definitive documentation and customary closing conditions, including regulatory approvals.
Shares of STLA are down 0.57% in early trading on Monday.