[News Space=Reporter seungwon lee] LG Energy Solution has established a battery recycling joint venture (JV) with Derichebourg (DBG), France's No. 1 metal recycling and environmental service company. It is the first Korea-Europe recycling joint venture in Europe.

Construction is expected to begin in 2026 in Bruyères-sur-Oise, in the Val d'Oise region of northern France, and full operation is expected to begin in 2027. It will have the capacity to process more than 20,000 tons of used batteries and scrap per year.

The new joint venture is a specialized preprocessing plant that safely crushes and shreds used batteries collected locally and process scrap generated during the battery manufacturing process to create a black powder-like intermediate product called “Black Mass.”

The black mass extracted through the preprocessing process will be regenerated into core metals such as lithium, cobalt, and nickel through the postprocessing process, and will then go through the cathode material production process before being finally supplied to LG Energy Solution’s global production facilities.

◆ Utilizing France’s Abundant Used Battery Resources, Expanding the European Battery Recycling Market

The two companies plan to secure raw materials by utilizing battery process scrap provided through LG Energy Solution’s European production base, the Wroclaw plant in Poland, and used batteries collected by DBG in France and nearby regions.

According to the European Automobile Manufacturers' Association (ACEA), France is expected to account for 15% of all electric vehicle sales in Europe in 2024, making it a market with a large demand for batteries, and its used battery resources are also expected to increase rapidly in the future.

DBG is the number one company in the French metal recycling market share and has over 200 collection facilities across France, so it is expected to be able to effectively secure France's rapidly growing used battery resources.

An official from LG Energy Solution said, “It is difficult to transport used batteries overseas and the transportation costs are high, so it is important to establish a preprocessing plant in a region with high battery demand in order to secure resources smoothly,” adding, “This cooperation in France will serve as a stepping stone for expanding the battery recycling business in Europe.”

◆ Preemptive response to EU battery recycling regulations and securing a stable supply chain to increase customer value

Through the establishment of this joint venture, LG Energy Solution plans to accelerate the establishment of a sustainable battery ecosystem in Europe and proactively respond to European battery recycling regulations.

According to the EU's 'Battery and Waste Battery Regulation' that will be implemented in 2024, the recycling ratio of battery raw materials in Europe will be mandatory at 16% cobalt, 6% lithium, and 6% nickel starting in 2031. As the standards will be raised to 26% cobalt, 12% lithium, and 15% nickel starting in 2036, preemptive investment to respond to regulations is essential.

In addition, it is expected that the company will be able to enhance its supply chain competitiveness by stably procuring key raw materials with price competitiveness, and further strengthen its customer value capabilities by solidifying the closed loop resource circulation system covering the entire battery life cycle, including production, sales, and recycling in Europe.

LG Energy Solution CSO (Chief Strategy Officer) Kang Chang-beom said, “Through this collaboration, we will be able to build a stable battery supply chain and effectively respond to European battery recycling regulations.” He added, “In the battery recycling business, we will continue to present the best customer value based on differentiated technology and production capabilities.”

“This partnership fully supports our goal of developing industrial solutions with high added environmental value, while also strengthening our links with local communities,” said Abderrahmane El Aoufir, DBG Chief Executive Officer.