His goal: to become European champion in “the circular economy” of the automobile. The Renault and Suez groups announced, on Thursday, October 3, a joint investment of 140 million euros in the capital of El Futuro es Neutral [« l’avenir est neutre »]the subsidiary created by the car manufacturer in 2021, specialized in vehicle recycling and reconditioning.
Specifically, Suez takes a 20% stake, leaving the remaining 80% to Renault. Neutral [l’anagramme de Renault] It reached a turnover of one billion euros in 2023. The ambition is to double this result in 2030. “The fact that groups as large as Renault and Suez are putting money on the table is proof of the potential of the recycling sector”Luca de Meo, CEO of the automotive group, commented on Thursday during a joint press conference at Renault’s historic headquarters in Boulogne-Billancourt (Hauts-de-Seine). “We want to demonstrate that industrial waste is a reusable and profitable resource”explained Sabrina Soussan, CEO of Suez. The water and waste treatment giant estimates the European market at 14 billion euros.
Its merger with the diamond brand should make it possible to respond not only to the objectives of reducing greenhouse gas emissions, but also to the great challenges of the coming years in the automobile sector, such as ensuring the supply of strategic materials or the volatility of raw material prices. It is above all a way to position itself, while European regulations plan to strengthen measures on the reuse of resources. From 2031, 25% of the plastics used in the construction of a new vehicle must come from recycling, and 16% of the cobalt from electric batteries.
“Business opportunity”
Renault and Suez have been partners since 2008 in the recovery of metal waste and in the recovery of end-of-use vehicles, within the company Indra, specialized in dismantling and integrated into El Futuro es Neutral. Renault has also invested in the reconditioning of used vehicles, with three dedicated factories, in Flins, Yvelines, Seville, Spain and Bursa, Turkey, which have processed more than 50,000 machines since 2021. Suez is developing a battery recycling project. electric vehicles with the Eramet group.
The bet is risky since recycling is still searching for its economic model: Asian virgin plastic is still cheaper, for example, than European recycled plastic. But the automaker wants to see a real “business opportunity” in recycling “closed loop”. “Every year in Europe around 11 million vehicles are scrapped, it is a real source”underlines Jean-Philippe Bahuaud, CEO of The Future is Neutral, who wants to serve all possible customers and not just Renault.
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