Renault aims to become the first European car manufacturer to recycle batteries on an industrial scale.
See also: Renault reveals everything about its 5 E-Tech Electric
French automaker Renault is exploring a lucrative business plan, partnering with companies to extract and recycle lithium and other metals for electric vehicle batteries, creating an economic cycle that could bring in billions of dollars and reduce dependence on China.
According to Automotive News Europe, Renault aims to become the first European carmaker to recycle batteries on an industrial scale. “In Europe, for now… no one can claim to recycle used batteries in a closed loop to reproduce nickel, cobalt and lithium to create new batteries,” said Jean-Philippe Bahuaud, CEO of Renault’s environmental unit, The Future Is Neutral (TFIN), which was founded in 2022.
Currently, Renault is in discussions with “specialized companies” that are already at an “advanced” stage of recycling and can help Renault raise its level.
In October, Stellantis announced that it had signed an agreement with hydrometallurgical metals recovery company Orano, aiming to create a joint venture with a focus on recycling electric vehicle batteries and production materials from its factories around the world.
See also: Nissan: Considering the possibility of cooperation with Honda
This is part of a European strategy to reduce its dependence on China for metals used in batteries, such as those in Renault vehicles, as most of the metals that power electric vehicles are mined and processed outside Europe.
Of course, using recycled metals can help reduce costs since they account for 70% of the cost of a battery, while batteries make up 40% of the cost of an electric vehicle.
Next month, according to Automotive News Europe, Renault will stop producing new vehicles at its Aubergenville plant in Flaine, France , and will switch to producing partially recycled spare parts and remanufactured cars.
Bahuaud said the company expects the factory to repair 9,000 batteries this year. Renault is selling the batteries and other parts, such as reconditioned electric motors and chargers, at a 30 percent discount on new products.
Renault is targeting sales of 2.3 billion euros ($2.49 billion) from the TFIN business, with an operating margin of more than 10% by the end of the decade.
See also: Lotus: In a favorable position to list its shares
One of the biggest challenges in recycling vehicle batteries for Renault is the safe and effective management of the hazardous materials contained in them, such as lead and sulfur. These materials require specific procedures for their safe removal and recycling. In addition, the collection and separation of used batteries is a major challenge. Many times, consumers do not know how to properly dispose of or recycle their batteries, leading to increased environmental pollution. Finally, the development and implementation of new technologies for recycling batteries is another major challenge. This process requires significant investments in research and development, as well as in the infrastructure to implement the new technologies.
Source: electrek
