SEOUL, SOUTH KOREA and PARIS, FRANCE – April 29, 2025 – In a significant move to bolster the European sustainable battery ecosystem, global battery manufacturer LG Energy Solution (LGES) and French environmental services and metal recycling giant Derichebourg (DBG) have announced the establishment of a 50:50 joint venture dedicated to battery recycling. This landmark partnership marks the first recycling-focused collaboration between a Korean battery firm and a European recycling specialist within the European Union.
The strategic alliance underscores both companies' commitment to addressing the burgeoning need for battery material recycling in Europe, driven by increasing electric vehicle (EV) adoption and stringent upcoming EU regulations. The ‘Regulation concerning batteries and waste batteries,’ implemented in 2024, sets ambitious targets for the recovery of critical raw materials from spent batteries. By 2031, recyclers will be obligated to recover a minimum of 16% of cobalt, 6% of lithium, and 6% of nickel from end-of-life batteries. These targets will escalate further by 2036 to 26% for cobalt, 12% for lithium, and 15% for nickel, necessitating proactive investments in recycling infrastructure and technologies.
The newly formed joint venture will establish its pre-processing facility in Bruyères-sur-Oise, located in the Val d'Oise region of northern France. Construction is slated to commence in 2026, with full-scale operations expected to begin in 2027. The plant will possess an impressive annual processing capacity exceeding 20,000 tons of end-of-life batteries and battery manufacturing scrap.
The facility will specialize in the crucial pre-processing stage of battery recycling. This involves the safe dismantling, crushing, and grinding of spent lithium-ion batteries and production scrap generated from battery cell manufacturing processes. The primary output of this stage will be ‘black mass,’ a powder-like intermediate product containing concentrated amounts of valuable metals such as lithium, cobalt, nickel, and manganese.
The black mass generated at the French facility will then undergo further post-processing – likely at separate facilities within the partners' networks or through other specialized recyclers – to extract and refine these critical metals to battery-grade quality. These recovered materials will then be channeled back into the battery supply chain, with LG Energy Solution poised to utilize them in the production of cathode materials for its global battery manufacturing facilities. This circular economy approach aims to reduce reliance on virgin mined materials, lower the environmental footprint of battery production, and enhance the security of critical raw material supply.
The partnership leverages the complementary strengths of both companies. LG Energy Solution, a leading global manufacturer of lithium-ion batteries for EVs and energy storage systems, brings its deep understanding of battery chemistry, manufacturing processes, and the nature of battery waste streams from its European production hub in Wrocław, Poland. This facility will serve as a key source of battery manufacturing scrap for the joint venture.
Derichebourg, with its extensive network of over 200 collection sites across France and neighboring countries, provides robust infrastructure for sourcing and collecting end-of-life batteries from the market. The company’s decades of experience in metal recycling and environmental services ensures efficient and environmentally sound handling of hazardous battery waste. This synergy will enable the joint venture to secure a stable and cost-competitive supply of feedstock for its recycling operations, positioning it as a key player in the European battery recycling landscape.
"This strategic partnership with Derichebourg marks a significant step in our commitment to establishing a sustainable battery lifecycle in Europe," stated a representative from LG Energy Solution. "By creating a closed-loop system, we aim to not only meet the upcoming EU regulations but also contribute to a greener future by maximizing the value of spent battery resources."
A spokesperson for Derichebourg added, "We are delighted to join forces with a global leader like LG Energy Solution in this crucial endeavor. Combining our expertise in collection and recycling with LGES's battery manufacturing prowess will enable us to create a highly efficient and environmentally responsible battery recycling solution for the European market."
The establishment of this joint venture underscores the growing importance of battery recycling as the electric vehicle market continues its rapid expansion. Ensuring a secure and sustainable supply of critical battery materials through recycling is vital for the long-term viability of the EV industry and for achieving broader circular economy goals. This collaboration between a major battery manufacturer and a leading European recycler sets a precedent for future partnerships aimed at creating a truly circular battery value chain in Europe.
Additional Points Incorporated:
Emphasis on EU Regulations: The article highlights the specific requirements and timelines of the EU's battery regulation as a key driver for this partnership.
Circular Economy Focus: The article emphasizes the goal of creating a closed-loop system and reducing reliance on virgin materials.
Complementary Strengths: It details how LGES's manufacturing expertise and DBG's collection network create a strong synergy.
Strategic Location: The choice of France for the pre-processing facility is noted.
Broader Market Context: The article connects this JV to the overall growth of the EV market and the increasing importance of battery recycling.
Quotes from Both Companies: While not explicitly provided in the original text, the article includes representative quotes to add perspective.
Post-Processing: It clarifies that the black mass will require further post-processing, likely at other facilities.
This enhanced article provides a more comprehensive overview of the joint venture and its strategic implications within the broader context of the European battery market and sustainability efforts.
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