LG Energy Solution and Derichebourg Launch Joint Battery Recycling Venture in France

In a significant move to advance sustainable practices in the battery industry, LG Energy Solution, a battery company headquartered in Seoul, South Korea, has announced the establishment of a joint venture with Derichebourg, a French leader in metal waste recycling. This collaboration marks a pivotal step toward addressing Europe’s increasing demand for efficient and sustainable battery recycling solutions.

According to LG Energy Solution, the new battery recycling plant will be located in Bruyères-sur-Oise, situated in the Val-d’Oise region of northern France. Construction is slated to begin in 2026, with operations set to commence in 2027. This facility will focus on the pre-processing of battery waste, which includes discharging, dismantling, and shredding battery scrap produced during the manufacturing process. Additionally, it will manage the collection of end-of-life electric vehicle (EV) batteries, ensuring that valuable materials are efficiently recovered.

LG Energy Solution noted that as its first battery recycling initiative in Europe, the plant will have a processing capacity of over 20,000 tons annually once fully operational. One of the key outputs from the pre-processing phase will be the extraction of black mass—an essential material rich in lithium, nickel, cobalt, and other valuable metals. These materials will be further processed and refined to supply LG Energy Solution’s battery production, aligning with the company’s strategy to secure a reliable and sustainable source of critical raw materials.

Under the terms of the joint venture, LG Energy Solution will provide battery scrap from its facility in Poland, while Derichebourg will source and supply end-of-life EV batteries from France and its neighboring countries. This strategic collaboration is designed to bolster the development of a closed-loop resource circulation system in Europe. By recovering valuable metals from used batteries, the two companies aim to reduce the need for new mining operations, thereby contributing to a more sustainable and circular economy.

LG Energy Solution highlighted that this joint venture comes in response to the upcoming EU Battery Regulation, which will require a minimum level of recycled content in batteries sold within Europe starting in 2031. The partnership is designed to meet these regulatory requirements while supporting car manufacturers in establishing their own closed-loop recycling systems for EV batteries. By addressing the EU’s environmental goals, LG Energy Solution and Derichebourg are positioning themselves as leaders in the sustainable battery recycling sector. And Derichebourg, with over 200 collection sites across France and more than 285 worldwide, plays a crucial role in sourcing the end-of-life EV batteries necessary for this venture. The company’s extensive network will help ensure a steady flow of materials to the recycling plant.

Strategic and Environmental Benefits

The establishment of this plant is not only a step toward securing a stable supply of recycled materials but also a commitment to environmental sustainability. By processing end-of-life batteries and scrap, the venture will significantly reduce the environmental impact associated with battery production and disposal. This initiative complements both companies’ broader goals of enhancing value chain competitiveness while advancing Europe’s battery recycling ecosystem.

The partnership also reflects the growing emphasis on environmental value. As Abderrahmane El Aoufir, CEO of Derichebourg, noted, “This partnership fully supports our ambition to develop industrial solutions with a high environmental added value, while strengthening the local roots of our activities.”

Chang Beom Kang, Chief Strategy Officer of LG Energy Solution, emphasized the long-term value of the collaboration: “This collaboration enables us to secure a stable and cost-competitive supply of recycled battery materials from the advanced processing of end-of-life batteries and battery scrap. This initiative will also significantly enhance the value we deliver to customers in the recycling sector.”

Both LG Energy Solution and Derichebourg are committed to deepening their strategic partnership. As the battery recycling market continues to evolve, the companies plan to expand their efforts in recycling technologies and facilities, further solidifying their position as leaders in the circular economy.

Source: LG Energy Solution