Stellantis Launches Circular Economy Project in Automotive Sector

A hub for creating industrial processes aimed at regenerating components and recycling materials, especially rare ones. On November 23, Stellantis opened its Sustainera Circular Economy Center (CE Hub) in the Mirafiori Center in Turin, Italy.

The aim of the Franco-Italian group is to apply circular economy concepts in the automotive world according to the 4-R principles: reman, repair, reuse, and recycle. Specifically, this is about creating conditions to extend the service life of the components and vehicles themselves, and then, at the end of their life cycle, about collecting materials and subsequently reintroducing them into the production cycle.

Used, worn, or defective components, such as engines, transmissions, and batteries for electric vehicles, will be removed here and remanufactured to original specifications. The company estimates that by 2025, 2.5 million used components could be used to supply the remanufacturing and recycling plant, and by 2023 this figure is estimated to reach 8 million. The same thing will happen with complete cars that can be repaired and put on the used car market. Finally, at the end of their life cycle, vehicles become a valuable source of components to be remanufactured and reused or of materials to be recycled.

According to Stellantis President John Elkann, “The Circular Economy Center will be a model plant in the automotive sector that combines environmental stewardship and economic development.” In this way, on the one hand, we create value, and on the other, we move closer to the goal of achieving net zero carbon emissions by 2038.

The investment amounts to 40 million euros, and the site currently employs 170 workers, with the number expected to increase to 550 by 2025. The hub was built by reclaiming abandoned sites using 5,000 tons of recycled metal and by reusing equipment taken from other group enterprises.

The recycling of electric vehicle batteries will be particularly important, allowing the retrieval of rare materials, such as cobalt, nickel, and lithium from end-of-life vehicles and from waste of giant factories. Again, to support the growth of the electricity sector, the first Battery Technology Center will also be opened in Mirafiori for testing and in-house development of batteries for electric vehicles.

“The Circular Economy Hub brings together skills and activities aimed at creating a center of excellence in Europe,” explained Stellantis CEO Carlos Tavares. “We are industrializing the remanufacturing and sustainable recycling of materials, creating new technologies and skills as we grow in the field. Our commitment to remanufacturing, repair, reuse, and recycling will not only ease the burden on our planet, but will also bring financial value to Stellantis, protecting our future as we transform our production and consumption patterns.”