Renault Group creates ‘The Future Is NEUTRAL’ company to operate the automotive circular economy value chain
Renault Group has announced the creation of ‘The Future Is NEUTRAL’ company, which aims to operate across the entire automotive circular economy value chain towards resource neutrality. Renault Group CEO Luca de Meo said:
“Today we are taking a further step in our historic commitment to the circular economy. Our subsidiaries Gaia, Indra and Boone Comenor, as well as the Flins Refactory, have already demonstrated our ability to generate activities that create economic, social and environmental value throughout the vehicle lifecycle. Based on this experience and convinced of the potential of these activities, we accelerated and created 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. car-to-car. Our ambition is to take recycling into a new era and become the European leader in the automotive circular economy.”
‘The Future Is NEUTRAL’ is aimed at all players in the automotive world, beyond the Renault Group. This new entity offersclosed-loop recycling solutions at each stage of a vehicle’s life: parts and raw materials supply, production, use and end-of-life.
The Future Is NEUTRAL’ is supported by its subsidiary Gaia, whose activities in battery repair, collection and reuse of parts and recycling of end-of-life vehicle materials are based in Flins. The entity also leverages its European electric fleet and Indra’s expanding network to assist in battery collection. The company will also work with its battery manufacturing partners, such as Verkor, to pool its end-of-life batteries with production waste.
The ultimate goal of the new company is to reach a turnover of more than €2.3 billion and an operating margin of more than 10% by 2030, making it an industry and European leader in the closed-loop automotive circular economy. To accelerate its development and reinforce its leadership, ‘The Future Is NEUTRAL’ is opening a minority of its capital to external investors with a view to co-financing investments of around €500 million until 2030.
Today, a vehicle is made up of 85% recyclable materials, yet it contains only 20-30% recycled materials from all industries. With this new venture, Groupe Renault aims to significantly increase the proportion of recycled materials from the automotive industry in the production of new vehicles.
The Future Is NEUTRAL also offers the automotive industry a consulting and training service dedicated to the circular economy.
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