Stellantis opens its first circular economy center in Turin

Stellantis inaugurated on Thursday its first center dedicated to the circular economy in Turin, Italy, with the aim of accelerating the recovery and recycling activities of cars, which should have sales of at least two billion euros by 2030.

Carlos Tavares, CEO of the automotive group created by the merger of PSA and FCA, said the two billion euro sales target would be revised upwards to reflect the 25% growth recorded in the business since the beginning of the year.

"The growth rate is high," he said, adding that the potential for the circular economy business should be revised upwards, without revealing details.

"We are building a profitable business here," he added.

The new center, located at the Stellantis Industrial Complex in Mirafiori, will initially focus on the remanufacturing of engines, gearboxes and high-voltage electrical batteries, as well as the remanufacturing and dismantling of vehicles, the group said in a statement.

"The main objectives are to extend the life of vehicles and spare parts. And when this becomes impossible, materials collected from the remanufacturing and dismantling of end-of-life vehicles will be recycled for reuse in the production process of new vehicles and spare parts," the statement added.

The global automotive industry is more than ever looking to secure its raw material supply amid heightened geopolitical tensions.

The Turin center, which was also conceived as a tool to fight global warming - Stellantis wants to become a zero-carbon company by 2038 - has received an investment of 40 million euros and is expected to employ 550 people by 2025.

The opening of the center in Turin is just the first step Stellantis is taking in this direction. The company plans to invest a total of €300 million in the circular economy by 2030.

In particular, Stellantis aims to become a zero-carbon company by 2038. The opening of the new center in Turin is one of the steps the company is taking to achieve this goal.