SHERIDAN, WYOMING – November 15, 2024 – Renault Group and SUEZ, a global leader in environmental services, have strengthened their partnership to accelerate the transition to a circular economy in the European automotive sector. This collaboration aims to reduce the industry's environmental impact by maximizing the use of recycled materials and minimizing waste.
The Future Is NEUTRAL: A Joint Venture for Circularity
At the heart of this partnership is The Future Is NEUTRAL, a company launched by Renault Group to provide comprehensive circular economy solutions for the automotive industry. SUEZ has acquired a 20% stake in The Future Is NEUTRAL, joining forces with Renault Group to further develop and expand its operations.
"SUEZ's decision to team up with us in The Future Is NEUTRAL is new evidence that coming up with this model was the right move," says Luca de Meo, CEO of Renault Group. "Our joint investment will allow us to accelerate in order to provide an open circular economy platform that meets the needs of all players in the automotive industry, in growing activities. We are doing this by strengthening existing operations and creating new closed-loop recycling solutions, from car to car."
Investing in a Sustainable Future
Through this partnership, The Future Is NEUTRAL will receive €140 million from its two shareholders to boost its operations and serve the entire European automotive industry. This investment underscores the commitment of both Renault Group and SUEZ to driving sustainable practices in the automotive sector.
Expertise and Capabilities
Renault Group and SUEZ bring complementary expertise and capabilities to The Future Is NEUTRAL. Renault Group contributes its knowledge of the automotive value chain, expertise in eco-design, and the industrial capabilities of its Refactory in Flins, France – Europe's first circular economy hub for mobility.
SUEZ adds its extensive experience in waste recycling and recovery, including the collection, sorting, and processing of automotive waste. The company also has the industrial capacity to produce consistent flows of recycled raw materials for its customers.
Key Activities
Together, Renault Group and SUEZ will focus on several key activities within The Future Is NEUTRAL:
- Design for recycling: Incorporating circular economy principles into vehicle design to facilitate the reuse and recycling of materials and components.
- Reverse logistics: Optimizing the collection and transportation of end-of-life vehicles and parts.
- Vehicle waste management: Developing efficient and sustainable solutions for managing waste generated throughout the automotive lifecycle.
- Closed-loop car-to-car recycling: Creating processes to recover materials and parts from end-of-life vehicles and reintroduce them into the production of new vehicles.
A Comprehensive Approach to Circularity
The Future Is NEUTRAL offers a wide range of solutions for all players in the automotive sector, including carmakers, equipment manufacturers, distributors, insurers, and private customers. The company addresses every stage of the vehicle lifecycle, from using recycled materials in production to reusing and remanufacturing parts, and finally, collecting, managing, and recovering end-of-life vehicles.
"SUEZ's investment in The Future Is NEUTRAL is a decisive milestone in our plan to open up to the entire automotive industry," says Jean-Philippe Bahuaud, CEO of The Future Is NEUTRAL. "With our two shareholders' support, we will be able to confirm our growth roadmap aimed at expanding and massifying our solutions while making them even more competitive. A large part of our operation in the closed-loop circular economy value chain is already up, running and profitable. We are working on integrating closed-loop battery recycling and scaling up to industrial levels together in the near future, to work with Europe's automotive industry on its journey to circularity."
The Importance of Circularity in the Automotive Industry
The automotive industry has a significant impact on natural resources. While cars are 85% recyclable, they are currently made with less than 30% recycled materials. By promoting the use of recycled materials, reusing and remanufacturing parts, and efficiently recovering end-of-life vehicles, Renault Group and SUEZ are contributing to a more sustainable future for the automotive sector.
This partnership marks a significant step towards a circular economy in the automotive industry, reducing reliance on virgin raw materials and minimizing waste.