Stellantis CEO Carlos Tavares announced that the company will increase its 2030 revenue target for its recycling and reconditioning unit after the unit’s revenue grew by 25% this year. The move is part of the automaker’s strategy to make electric vehicles (EVs) more affordable by addressing rising prices and reduced availability of raw materials.
Tavares highlighted the impact of raw material price volatility on EV affordability, stating that the company aims to establish a stable flow of supplies for raw materials to avoid market fluctuations. Stellantis plans to generate €2 billion ($2.2 billion) in revenue by 2030 from its circular economy unit, which focuses on recycling and extending the life of parts, including EV batteries.
Tavares inaugurated the automaker’s first hub for its recycling and reconditioning business, part of its broader circular economy initiative. The new circular economy hub, located in the Mirafiori complex in Turin, will focus on life extension for parts and vehicles, component reconditioning, and recycling materials for return to the manufacturing loop.
Stellantis intends to add three more facilities of this kind, likely in North America, Latin America, and the Africa Middle East region. The company has invested €40 million in the Italian site, which currently employs 170 people, a number set to rise to around 550 by 2025. The circular economy initiative aims to build a profitable business that contributes to the affordability and sustainability of electric vehicles.