In a significant move towards bolstering a sustainable battery ecosystem in Europe, LG Energy Solution (LGES) and Derichebourg, a leading French metal waste recycling company, have announced a strategic joint venture to construct a state-of-the-art battery recycling facility in northern France. The announcement, made yesterday by LG Energy Solution, marks a crucial first step for the South Korean battery giant in establishing a closed-loop system within the European market.

The new pre-processing plant will be located in Bruyères-sur-Oise, within the Val-d'Oise region. Construction is slated to begin in 2026, with operations expected to commence in 2027. The facility will specialize in the initial stages of battery recycling, including the crucial processes of discharging, dismantling, and shredding both battery manufacturing scrap and end-of-life electric vehicle (EV) batteries.

At full operational capacity, the plant is projected to process over 20,000 tons of battery waste annually. A key output of this pre-processing will be the extraction of "black mass," a substance rich in valuable battery raw materials such as lithium, nickel, and cobalt. This black mass will then undergo further post-processing to recover these essential metals, which LG Energy Solution intends to reuse in its own battery production.

The collaboration outlines a clear division of responsibilities for material sourcing. LG Energy Solution will supply battery scrap generated from its manufacturing facility in Poland, while Derichebourg will leverage its extensive network to collect end-of-life EV batteries from France and neighboring European countries. Derichebourg boasts a significant infrastructure with over 200 collection sites across France and more than 285 worldwide, ensuring a robust supply of end-of-life batteries for the joint venture.

Furthermore, the establishment of this recycling joint venture positions both companies to address the European Union's Battery Regulation, which will mandate minimum levels of recycled content in batteries sold within Europe starting in 2031. By proactively investing in recycling infrastructure, LG Energy Solution and Derichebourg are ensuring they can meet these future regulatory demands and contribute to a more sustainable battery lifecycle.

Executives from both companies expressed enthusiasm about the partnership. Chang Beom Kang, CSO of LG Energy Solution, stated, "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."

Abderrahmane El Aoufir, CEO of Derichebourg, echoed this sentiment, emphasizing the environmental and local benefits of the venture: "This partnership fully supports our ambition to develop industrial solutions with a high environmental added value, while strengthening the local roots of our activities."