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Stellantis Targets $1.9 Billion in Recycling Revenue by 2030

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Stellantis Targets $1.9 Billion in Recycling Revenue by 2030

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Stellantis NV is accelerating efforts to extend the life of used vehicles and build new ones with recycled materials to become more efficient amid high energy costs and scarce natural resources. 

The maker of Jeep SUVs and Fiat cars is targeting annual revenue of more than 2 billion euros ($1.9 billion) by 2030 from its recycling push. Stellantis aims to have roughly 35% recycled materials in vehicles being rolled out as of 2027, Alison Jones, who heads the Stellantis circular economy business unit, said Tuesday during a media call on Tuesday.

The move will also offer another opportunity for car production workers as factories increasingly switch to making electric cars, which are simpler to make and require fewer employees. 

“We’d look to see if we can reskill current colleagues so they can work on new tech and manufacturing processes we have,” Jones said. Repair and re-manufacturing allows Stellantis to save as much as 80% of raw materials and up to 50% of energy consumed versus the manufacturing of new car parts, she said.

See related article: EverestLabs Raises $16.1M to Transform the Recycling Industry with AI and Automation

Stellantis generated 528 million euros in revenue last year from selling re-manufactured and repaired components. It already has an e-commerce site where customers can directly purchase used car parts. Stellantis this month also unveiled the Oli concept SUV, which uses recyclable parts the can be replaced or upgraded, extending the car’s life and reducing its price. 

While carmakers detail plans for more sustainable models, key regions such as the European Union are stepping up regulation on recycling. Stellantis competitor Renault SA also is due to present its own circular economy plans later this week.

Source: Bloomberg

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