LG Energy Solution Establishes Battery Recycling Joint Venture with Derichebourg

• Companies to build pre-processing facility in northern France to extract 'black mass.'
• Construction to begin in 2026; operations to commence in 2027
• LG Energy Solution marks a critical first step toward a closed-loop system in Europe to strengthen value chain competitiveness.

SEOUL, South Korea, April 29, 2025 /PRNewswire/ -- LG Energy Solution has announced plans to establish a joint venture with Derichebourg, the French leader in metal waste recycling, to build a state-of-the-art battery recycling plant.

Construction will begin in 2026 in Bruyères-sur-Oise, located in the Val-d'Oise region of northern France, with operations scheduled to commence in 2027.

The new plant will specialize in pre-processing, such as discharging, dismantling and shredding battery scrap—waste generated during battery production—as well as the collection of end-of-life EV batteries.

Marking LG Energy Solution's first battery recycling joint venture in Europe, this state-of-the-art facility will have a processing capacity of over 20,000 tons per year at its full operation.

The black mass extracted at the pre-processing facility will undergo further post-processing to recover key battery raw materials such as lithium, nickel, and cobalt, which will then be used in LG Energy Solution's battery production.

Under the agreement, LG Energy Solution will supply battery scrap from its facility in Poland, while Derichebourg will provide end-of-life EV batteries collected from France and surrounding countries.

Through this joint venture, LG Energy Solution is accelerating the development of a closed-loop^[1] resource circulation system in Europe. This aligns with the company's goals to enhance raw material sourcing stability and strengthen its value chain competitiveness, while reinforcing Europe's sustainable battery recycling ecosystem.

Considering the EU Battery Regulation, which mandates a minimum level of recycled content in batteries sold in Europe starting in 2031, this partnership will also effectively address upcoming regulatory requirements. In addition, the collaboration aims to support car manufacturers seeking to establish a closed-loop battery recycling system, further promoting a circular economy.

Derichebourg operates over 200 collecting sites in France and over 285 sites worldwide. LG Energy Solution and Derichebourg plan to deepen their strategic partnership and expand their joint efforts in the battery recycling business.

"This collaboration enables us to secure a stable and cost-competitive supply of recycled battery materials from the advanced processing of end-of-life batteries and battery scrap," said Chang Beom Kang, CSO of LG Energy Solution. "This initiative will also significantly enhance the value we deliver to customers in the recycling sector."

"This partnership fully supports our ambition to develop industrial solutions with a high environmental added value, while strengthening the local roots of our activities," said Abderrahmane El Aoufir, CEO of Derichebourg.

[1] Closed-loop system: Enables the recycling of used batteries and the reuse of recovered materials in new battery production.

About LG Energy Solution

LG Energy Solution (KRX: 373220), a split-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 69,600 patents. Its robust global network, which spans North America, Europe, and Asia, includes battery manufacturing facilities established through joint ventures with major automakers. Committed to building sustainable battery ecosystem, LG Energy Solution aims to achieve carbon neutrality across its value chain by 2050, while embodying the value of shared growth and promoting diverse and inclusive corporate culture. To learn more about LG Energy Solution's ideas and innovations, visit https://news.lgensol.com.