Stellantis opens circular economy hub in Italy

Stellantis N.V. has opened its SUSTAINera Circular Economy Hub (CE Hub) at its Mirafiori Complex in Turin, Italy.

The Circular Economy Hub is designed to extend the life of parts and vehicles, ensuring they last for as long as possible. When that is no longer possible, the material is collected for recycling and then returned to the manufacturing loop to build new vehicles and parts.

The CE Hub has four functions. It remanufactures used, worn, or defective components, such as engines, gearboxes and EV batteries. They are disassembled, cleaned, and remanufactured to original OEM specifications.

The goal is to offer a sustainable and affordable alternative available under the SUSTAINera label within the Stellantis spare parts offer. The facility expects to manage over 50,000 remanufactured parts by 2025, rising to 150,000 by 2030.

A sorting centre handling an estimated 2.5 million worn parts, also known as cores, will supply the facility’s remanufacturing and recycling activities by 2025, increasing to eight million parts by 2030.

In addition, vehicles will be repaired using new, remanufactured or used parts and then reintroduced through SPOTiCAR, Stellantis’s manufacturer-certified used-vehicle program, and the Stellantis & You, Sales and Services network.

At the end of their life cycle, vehicles will be dismantled and the parts will be remanufactured, reused or converted to material for recycling. Specifically, used OEM parts managed by the CE Hub will integrate the stock available from partner B-Parts to source the SUSTAINera Reuse offer.

John Elkann, chairman of Stellantis, and CEO Carlos Tavares inaugurated the operations and attended the ribbon cutting.

“The Circular Economy Hub brings together a powerhouse of skills and activities aimed at creating a high-performing center of excellence in Europe,” said Tavares.

“We are industrializing the recovery and sustainable reuse of materials, building new technologies and advanced capabilities as we grow in this area. We know that our commitment to remanufacturing, repairing, reusing and recycling will not only take pressure off our planet, but it will also bring financial value to Stellantis, safeguarding our shared future as we quickly transform our production and consumption business model.”

“This additional investment of our company here in Turin demonstrates the commitment of Stellantis to Italy in the context of the evolution of our industry, and also the ability of our communities to renew themselves by building their future,” Elkann said.

“When all stakeholders and Stellantis share the same ambition and agree on a common path, ideas become reality, and the Circular Economy Hub we inaugurate today is proof of this. It will be a blueprint plant in the automotive sector that combines environmental respect with economic development.”

Stellantis spent €40 million to build the 73,000 sq. metre (787,000 sq. ft) facility. The company recycled more than 5,000 tons of metal of obsolete assets in the process. Equipment and machinery for the facility was repurposed from other locations, bringing a 55% saving compared to purchasing new machinery and equipment. The site currently employs 170. This number is projected to increase to approximately 550 people by 2025.

In addition to supporting its primary activities, the Circular Economy Hub also complements recent initiatives, including:

  • partnering with Orano for the pre-treatment within the EV batteries recycling process to reclaim cobalt, nickel, and lithium from end-of-life vehicles and scrap from gigafactories;
  • forming the SUSTAINera Valorauto SAS joint venture with Galloo to manage end-of-life vehicles;
  • teaming up with Qinomic to develop electric retrofitting of light commercial vehicles.
  • establishing partnerships for raw EV battery materials and six planned gigafactories across Europe and North America; and,
  • opening its first Battery Technology Center in the Mirafiori Complex for in-house testing and development of EV batteries.

The Stellantis Circular Economy Business Unit is one of the seven accretive business units announced in the Dare Forward 2030 strategic plan, and it targets to generate more than €2 billion in revenues by 2030.