# Stellantis aims to boost recycled material content in vehicles
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-10-11
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Stellantis Aims to Increase Recycled Material in Vehicles
Meta Description: Learn how Stellantis plans to boost revenues and reduce costs by utilising recycled materials in their vehicles, contributing to a sustainable future.
URL: https://financedigest.com/stellantis-aims-to-boost-recycled-material-content-in-vehicleshtml

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MILAN (Reuters) -Stellantis will look to upgrade its medium-term target for the minimum percentage of recycled material in its vehicles from 35%, the carmaker’s Senior Vice President Global Circular Economy Alison Jones said on Tuesday.

In its business plan, Stellantis has set a goal to boost revenues of its recycling business ten-fold to over 2 billion euros ($1.9 billion) by 2030. It also aims to quadruple revenues from extended-life parts and services.

We talk about having a minimum [target of 35% of recycled](https://www.financedigest.com/eu-sets-recycling-reuse-targets-to-cut-packaging-waste.html "EU sets recycling, reuse targets to cut packaging waste") materials in our vehicles, it will vary by vehicles,” Jones said.

Of course we’ll look to increase that, because we want to make sure we take more material and put it [back in our vehicles](https://www.financedigest.com/investors-go-back-to-basics-with-simpler-self-driving-vehicles.html "Investors go back to basics with simpler self-driving vehicles") going forward,” she added, without specifying what the percentage might rise to.

Presenting Stellantis’s Circular Economy business at on online [press conference](https://www.financedigest.com/5-top-tips-when-holding-a-crisis-press-conference.html "5 Top Tips When Holding a Crisis Press Conference"), Jones said the project – based on “reman”, “repair”, “reuse” and “recycle” – would help the group meet its carbon net zero target set for 2038.

It will also help the [world’s fourth largest carmaker to keep](https://www.financedigest.com/soccer-englands-houghton-will-keep-knocking-the-door-for-the-world-cup.html "Soccer-England’s Houghton will keep ‘knocking the door’ for the World Cup") prices lower as the shift to electrification often means more expensive vehicles, and cope with potential prolonged shortages of raw materials in its supply chain.

CEO Carlos Tavares has said scarcity of [raw materials](https://www.financedigest.com/syngenta-4q-profit-falls-as-raw-material-prices-increase.html "Syngenta 4Q profit falls as raw material prices increase") will continue in the next decade, adding it is a key task for the carmaker to extend the life of materials it uses.

Demand is booming worldwide for recycled materials as manufacturers, from automakers to fashion firms, seek to meet their [green targets](https://www.financedigest.com/britains-tax-take-risks-blowing-green-energy-off-target.html "Britain’s tax take risks blowing green energy off target"). This often makes recycled materials more expensive than new ones.

We’re focused on having the entire circular loop working, so we have those materials in our loop and we’re not subject to fluctuations in [material prices,”](https://www.financedigest.com/henkel-trims-earnings-outlook-on-raw-material-price-spike.html "Henkel trims earnings outlook on raw material price spike") Jones said.

She added Stellantis’ “remanufactured” components were typically 10% to 30% cheaper than original ones, thanks to the [reduced use of raw materials and energy](https://www.financedigest.com/britains-ofgem-to-urge-public-to-reduce-energy-usage-ft.html "Britain’s Ofgem to urge public to reduce energy usage – FT").

Jones said the [development of the circular economy business](https://www.financedigest.com/reasons-to-hire-a-web-developer-for-your-business-website.html "Reasons to Hire a Web Developer for Your Business Website") could lead to M&A deals as Stellantis looks to increase its range of skills and expertise, as well as developing them in-house.

Stellantis has picked the Mirafiori complex in Turin to launch its main circular economy [hub next](https://www.financedigest.com/setsquared-helps-turn-basingstoke-into-the-souths-next-tech-and-innovation-hub.html "SETsquared helps turn Basingstoke into the South’s next tech and innovation hub") year, focusing on reconditioning and dismantling vehicles and reusing components.

Circular economy hubs will run alongside “local loops”, allowing products and materials to [remain within countries and speeding up the business](https://www.financedigest.com/iran-open-for-business-but-caution-remains-the-watchword.html "Iran: ‘open for business’ – but caution remains the watchword").

($1 = 1.0310 euros)

[(Reporting by Giulio Piovaccari Editing by Barbara Lewis and Mark](https://www.financedigest.com/geoengineering-marks-scientific-gains-in-u-n-report-on-dire-climate-future.html "Geoengineering marks scientific gains in U.N. report on dire climate future") Potter)


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