LG Energy Solution and Derichebourg Partner for Battery Recycling
LG Energy Solution has taken a significant step towards environmental sustainability by forming a joint venture with Derichebourg, a prominent player in metal waste recycling. This partnership aims to establish a modern battery recycling facility designed to process and reclaim valuable materials from battery waste.
Construction Plans and Facility Operations
The new battery recycling plant is set to begin construction in 2026 in Bruyères-sur-Oise within the Val-d'Oise region. With operations expected to launch in 2027, this facility marks a crucial advancement for LG Energy Solution, as it will be their inaugural battery recycling initiative in Europe.
At its full capacity, the plant will be able to process over 20,000 tons of battery waste annually, focusing on the pre-processing stages involving discharging, dismantling, and shredding battery scrap, as well as managing end-of-life electric vehicle (EV) batteries.
Insights into the Recycling Process
The primary objective of the facility is to extract 'black mass', a valuable substance that contains essential materials like lithium, nickel, and cobalt. After being extracted, these materials will undergo further treatment to purify them, ultimately allowing LG Energy Solution to reintroduce them into their battery production processes.
Strategic Goals and Sustainability Commitment
This collaboration significantly advances LG Energy Solution's commitment to establishing a closed-loop resource circulation system, particularly in Europe. By securing a reliable and cost-effective supply of recycled materials, LG Energy Solution aims to enhance the stability of its raw material sourcing, thereby boosting its competitiveness in the market.
As part of the EU's Battery Regulation, which enforces minimum recycled content standards for batteries sold in Europe starting in the near future, this joint venture is pertinent. The initiative will additionally aid automotive manufacturers striving for a closed-loop battery recycling system, ultimately supporting a circular economy.
Derichebourg's Role and Partnership Expansion
Derichebourg brings extensive experience with over 200 collection sites across France and an even larger number of operations globally. The two companies plan to deepen their partnership to further enhance their efforts in battery recycling.
"Our collaboration is vital in securing a stable and economically viable supply of recycled battery materials from the advanced processing of end-of-life batteries and battery scrap," stated Chang Beom Kang, CSO of LG Energy Solution. This partnership not only reinforces their position in the battery recycling sector but also demonstrates a commitment towards sustainability.
Abderrahmane El Aoufir, CEO of Derichebourg, expressed that this initiative aligns with their goal to create high environmental value while also reinforcing the business's local roots.
About LG Energy Solution
LG Energy Solution (NASDAQ: 373220) is a renowned global manufacturer of lithium-ion batteries, serving various sectors, including electric vehicles and energy storage systems. With a history of over 30 years in pioneering battery technologies and a vast portfolio of over 69,600 patents, the company is a leader in battery innovation. It has established a robust global presence, including joint ventures with major automotive brands across key regions such as North America and Europe. Aiming to achieve carbon neutrality by 2050, LG Energy Solution is dedicated to promoting an inclusive corporate culture and fostering sustainable practices in the battery ecosystem.
Frequently Asked Questions
What is the purpose of the joint venture between LG Energy Solution and Derichebourg?
The joint venture aims to build a battery recycling facility to reclaim valuable materials from battery waste and support a sustainable circular economy.
When will the battery recycling facility begin operations?
The construction of the facility is set to commence in 2026, with operations expected to start in 2027.
What materials will the recycling facility process?
The facility will primarily process battery scrap and end-of-life EV batteries to extract important materials such as lithium, nickel, and cobalt.
How does this partnership benefit the environment?
This partnership contributes to the development of a closed-loop resource circulation system, which enhances the sustainability of battery production and helps in meeting regulatory requirements for recycled content.
How does LG Energy Solution plan to secure recycled materials?
LG Energy Solution will source battery scrap from its Polish facility, while Derichebourg will collect end-of-life EV batteries from France and nearby areas.
