LG Energy Solution is establishing its first European battery recycling joint venture with France’s Derichebourg Group, securing a foothold in the region’s increasingly regulated battery materials market.
The 50-50 partnership will build a facility in Bruyères-sur-Oise, northern France, capable of processing over 20,000 tons of used batteries and manufacturing scrap annually once operational in 2027, the South Korean company said Tuesday.
The plant will focus on pre-treatment, converting used batteries into “black mass” powder containing critical minerals like lithium, cobalt, and nickel. These materials will be further processed before being supplied to LG Energy Solution’s global production facilities.
“This collaboration enables us to secure a stable and cost-competitive supply of recycled battery materials,” said Chang Beom Kang, LG Energy Solution’s chief strategy officer.
The venture positions LG Energy ahead of tightening EU regulations. Under rules set to take effect in 2031, battery manufacturers must incorporate 16% recycled cobalt, 6% lithium, and 6% nickel in new batteries sold in Europe, with higher thresholds following in 2036.
Derichebourg, which operates over 200 collection sites across France, will supply end-of-life batteries from France and neighboring countries, while LG will contribute manufacturing scrap from its Polish facilities.
The partnership represents the first Korean-European recycling joint venture in Europe as battery makers race to establish sustainable supply chains amid growing electric vehicle adoption and regulatory pressures.
