The Future Is NEUTRAL: The circular economy is stepping right into a new period!
- Renault Group is creating The Future Is NEUTRAL, the primary firm working throughout the whole automotive circular economy worth chain, aiming at shifting the automotive business in direction of useful resource neutrality.
- Bringing collectively all the prevailing experience of the group and its companions on this exercise, this new entity gives closed-loop1 recycling options at every stage of a automobile’s life: provide of elements and uncooked supplies, manufacturing, use and finish of life.
- With the target of the business portfolio reaching a turnover2 of greater than
2,3 billion euros and an working margin of extra than 10% by 2030,
The Future Is NEUTRAL goals to develop into the chief in industrial and European scale of the closed-loop automotive circular economy, on the service of automotive producers in addition to the whole business. - Renault Group is thus taking one other step ahead in its historic dedication to the circular economy.
Boulogne-Billancourt, October 13, 2022 – Today, Renault Group introduced the creation of a brand new entity solely devoted to the circular economy: The Future Is NEUTRAL. By bringing collectively the prevailing industrial and technological experience and property of the group and its companions underneath a brand new model, The Future Is NEUTRAL is the first firm to function throughout the whole automotive circular economy worth chain, and is geared toward all gamers within the automotive world, past Renault Group.
In a context of vitality transition marked by the shortage of sources and inflation within the value of uncooked supplies, this entity will develop extra technological and industrial options due to the experience of its subsidiaries and its community of companions already working. It will allow the automotive business to considerably enhance the proportion of recycled supplies from the automotive business within the manufacturing of recent automobiles. Today, a brand new automobile accommodates solely between 20 and 30% recycled supplies from all industries.
In the quick time period, the entity goals at rising its current companies with a devoted business mannequin and growing new alternatives with the automotive business. With the target of the business portfolio reaching a turnover of greater than €2,3 billion2 and an working margin of greater than 10%2 by 2030, The Future Is NEUTRAL goals to be the commercial and European chief within the closed-loop automotive circular economy.
Finally, with a view to speed up its growth and strengthen its management in a fast-growing market, The Future Is NEUTRAL is opening up a minority of its capital to outdoors buyers with a view to
co-financing investments of round €500 million till 2030.
Luca de Meo, CEO of Renault Group, stated: “Today we are taking another step in our historic commitment to the circular economy. Our subsidiaries Gaia, Indra and Boone Comenor, as well as the Refactory in Flins, have already demonstrated our ability to generate activities that create economic, social and environmental value throughout the vehicle life cycle. Based on this experience and convinced of the potential of these activities, we are accelerating and creating The Future Is NEUTRAL, which brings together all our industrial and technological assets, as well as our network of strategic partners. Its mission: to grow its business with ambitious strategic plans and new outlets by offering the automotive industry, faced with the climate challenge, new regulatory requirements and increasing pressure on resources, closed-loop recycling solutions, i.e. from car to car. Our ambition is to bring recycling into a new era and become the European leader in the automotive circular economy.”
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“From car to car”: the automotive as a uncooked materials
Every yr in Europe greater than 11 million automobiles, made up of round 85% recyclable supplies, attain the tip of their life. However, this useful resource is under-exploited: new automobiles are made up of solely 20-30% of recycled materials, from all industries. Today, the recyclable materials from end-of-life automobiles is usually recovered for different industrial functions (metallurgy, development, and many others.). The goal of The Future Is NEUTRAL is to take care of the worth of elements and supplies for so long as attainable and to allow the business to attain a a lot greater charge of recycled automotive supplies within the manufacturing of recent automobiles.
Jean-Philippe Bahuaud, CEO of The Future Is NEUTRAL, explains: “In the automotive sector, the first under-exploited resource is the car itself, which is made up of more than 85% of metals and plastics. The Future Is NEUTRAL brings together the expertise to convert this potential into new growth levers. This new entity aims to push the automotive industry towards resource neutrality, extracting from each vehicle the largest possible amount of material needed to manufacture a new model.”
The Future Is NEUTRAL’s experience
The firm’s power lies in its skill to mobilise a community of subsidiaries and companions to gather elements, supplies and batteries all through the automotive lifecycle, from scrap automobiles, manufacturing unit rejects and garages. Thanks to this ecosystem, The Future Is NEUTRAL is growing circular economy loops at every stage of a automobile’s life, from the manufacturing section to the use and finish of lifetime of automobiles.
In concrete phrases, The Future Is NEUTRAL depends on its subsidiary Gaia, whose battery restore, elements assortment and reuse, and recycling of supplies from end-of-life automobiles (ELVs) are based mostly in Flins.
Also situated on the coronary heart of the Flins Refactory, the renovation of mechanical and mechatronic elements, in addition to the long run automobile dismantling line, purpose to produce these circular flows. With its reference accomplice Suez, the entity additionally owns two corporations: Indra3, the chief in ELV therapy in France,
with greater than 370 permitted centres, and Boone Comenor4, an professional within the recycling of steel scraps from business5.
Alongside industrial companions, The Future Is NEUTRAL goals at turning into a future European chief in closed-loop battery recycling, according to laws, and engaging to different automotive producers by leveraging a world-class industrial course of by way of yield and purity to make sure the required stage of recycled content material of their batteries at the most effective value. To develop Europe’s first closed-loop battery recycling supply, the entity depends on Europe’s largest fleet of electrical automobiles6, high-content chemistry7 and capitalises on INDRA’s increasing community to help in battery assortment and GAIA’s experience in battery prognosis. Finally, The Future Is NEUTRAL will even work with its battery producer companions, akin to Verkor, to pool their end-of-life batteries with manufacturing waste.
To perform its actions, The Future Is NEUTRAL depends on a variety of technical expertise, from superior engineering and chemistry to using information, which it locations on the coronary heart of its business mannequin to optimise the financial and environmental efficiency of its options.
The Future Is NEUTRAL additionally gives the automotive business a consultancy service, in addition to coaching devoted to the circular economy, with the help of the Circular Mobility Industry (ICM) campus based mostly in Flins, as a part of the group’s ReKnow University.
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About Renault Group
Renault Group is on the forefront of a mobility that’s reinventing itself. Strengthened by its alliance with Nissan and Mitsubishi Motors, and its distinctive experience in electrification, Renault Group contains 4 complementary manufacturers – Renault, Dacia, Alpine and Mobilize – providing sustainable and modern mobility options to its clients. Established in additional than 130 nations, the Group has bought 2.7 million automobiles in 2021. It employs almost 111,000 individuals who embody its Purpose daily, in order that mobility brings individuals nearer. Ready to pursue challenges each on the street and in competitors, Renault Group is dedicated to an formidable transformation that may generate worth. This is centred on the event of recent applied sciences and companies, and a brand new vary of much more aggressive, balanced and electrified automobiles. In line with environmental challenges, the Group’s ambition is to attain carbon neutrality in Europe by 2040. https://www.renaultgroup.com/en/
Juliette Faucon / +33 7 89 27 09 92 / [email protected]
1 Closed loop: i.e. from the automotive to the automotive.
2 Total Scope, Sum of the Parts.
3 Indra is a three way partnership owned 50% by Renault Group and 50% by Suez.
4 Boone Comenor is a three way partnership owned 33% by Renault Group and 67% by Suez.
5 In 10 years, the actions developed by the Gaia, Indra and Boone Comenor subsidiaries have already made it attainable to get better 14 million tonnes of metal, the equal of greater than 17 million automobiles, a yr’s manufacturing in Europe, and 12,000 tonnes of plastics and copper, sufficient to produce one yr’s manufacturing of Renault Megane in polypropylene.
6 900,000 Renault and Nissan electrical automobiles on the street by 2022.
7 Chemicals wealthy in nickel, manganese, cobalt and lithium.
