Renault Group is creating The Future Is NEUTRAL, which it says is the first company operating across the entire automotive circular economy value chain to move the automotive industry towards resource neutrality.
The car manufacturer says that by bringing together all the existing expertise of the group and its partners in this activity, this new entity offers closed-loop recycling solutions at each stage of a vehicle’s life.
Renault Group says this entity will develop more technological and industrial solutions thanks to the expertise of its subsidiaries and its network of partners already operating.
It continues that the entity will also enable the automotive industry to significantly increase the proportion of recycled materials from the automotive industry in the production of new vehicles. In the short term, the entity is aiming to grow its existing companies with a dedicated business model and develop new opportunities in the automotive industry.
With the objective of the business portfolio reaching a turnover of more than €2.3 billion and an operating margin of more than 10% by 2030, The Future Is NEUTRAL aims to be the industrial and European leader in the closed-loop automotive circular economy.
The Future Is NEUTRAL brings together the expertise to convert this potential into new growth levers.
Renault Group says The Future Is NEUTRAL is opening up a minority of its capital to outside investors with a view to co-financing investments of around €500 million until 2030.
The company’s strength lies in its ability to mobilise a network of subsidiaries and partners to collect parts, materials and batteries throughout the automotive lifecycle, from scrap cars, factory rejects and garages, the car manufacturer says.
It continues, that thanks to this ecosystem, The Future Is NEUTRAL is developing circular economy loops at each stage of a vehicle’s life, from the production phase to the use and end of life of vehicles.
Alongside industrial partners, The Future Is NEUTRAL aims at becoming a “future European leader” in closed-loop battery recycling. To develop Europe’s first closed-loop battery recycling system, the entity relies on Europe’s largest fleet of electric vehicles and high-content chemistry and capitalises on INDRA’s expanding network to assist in battery collection and GAIA’s expertise in battery diagnosis.
The Future Is NEUTRAL will also work with its battery manufacturer partners, such as Verkor, to pool their end-of-life batteries with production waste.
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 also offers the automotive industry a consultancy service, as well as training dedicated to the circular economy, with the support of the Circular Mobility Industry (ICM) campus based in Flins, as part of the group’s ReKnow University.
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.”
