LG Energy Solution is partnering with French battery recycling company Derichebourg to build a joint electric vehicle (EV) battery recycling plant. The facility, with an annual capacity of 20,000 tons, will be constructed in northern France and begin operations next year. The move is a proactive response to Europe’s mandatory battery recycling regulations and aims to secure competitively sourced recycled materials.
On the 28th (local time), Derichebourg announced the establishment of the joint recycling plant with LG Energy Solution. The new facility will be located in Bruyères-sur-Oise, northern France, with an annual processing capacity of 20,000 tons. The joint venture will be split 50-50, though the investment amount was not disclosed. After completing permits, construction will begin next year, with operations slated to start in 2027.
The two companies plan to use scrap materials from LG Energy Solution’s Wrocław plant in Poland for recycling at the new facility. This initiative is expected to support a circular economy and help comply with European regulations. The European Union (EU) has enacted the Sustainable Batteries Regulation, mandating battery recycling starting in 2031. Minimum recycling rates for raw materials include cobalt (16%), lithium (6%), lead (85%), and nickel (6%). By 2036, these rates will increase to cobalt (26%), lithium (12%), lead (85%), and nickel (15%).
With the EU tightening regulations, LG Energy Solution decided to establish the joint venture with Derichebourg. The Korean battery maker has been steadily expanding into the battery recycling market. In December 2021, it invested $42 million in North American recycler Li-Cycle, securing a 2.6% stake. The following year, it signed a memorandum of understanding (MOU) with Huayou Cobalt to establish a battery recycling joint venture. Last year, Ultium Cells—a joint venture between LG Energy Solution and General Motors—partnered with U.S. recycler Redwood Materials. The collaboration with Derichebourg follows this trend, positioning LG Energy Solution for proactive investment amid Europe’s regulatory landscape.
Kang Chang-bum, Chief Strategy Officer (CSO) of LG Energy Solution, stated, “Through advanced processing of end-of-life batteries and battery scrap, we will be able to secure stable and cost-competitive recycled battery materials. This initiative will significantly enhance the value we deliver to customers in the recycling sector.”
