Constellium to provide closed-loop recycling for the all-new Megane E-TECH Electric

Rhea-AI Summary

Constellium SE (NYSE: CSTM) has partnered with Renault Group to implement a closed-loop recycling system for the Megane E-TECH Electric. This innovative process will recycle aluminum manufacturing scrap back into production, minimizing CO₂ emissions and maintaining material integrity. Constellium will provide high-quality aluminum sheets for both outer and inner panels of the vehicle. This partnership enhances both companies' sustainability efforts and contributes to the circular economy in the automotive sector. Additionally, Constellium is expanding its recycling capabilities with a €130 million investment in a new facility in Neuf-Brisach, expected to boost recycling capacity by approximately 130,000 tons by 2025.

Positive

• Collaboration with Renault Group supports sustainable automotive solutions.
• Closed-loop recycling process reduces CO₂ footprint and maintains aluminum quality.
• €130 million investment in recycling capacity set to enhance operations by 2025.

Negative

• None.

PARIS, April 27, 2023 (GLOBE NEWSWIRE) -- Constellium SE (NYSE: CSTM) announced today its agreement with Renault Group to establish a closed-loop recycling process for the all-new Megane E-TECH Electric. Aluminium, lightweight and fully recyclable, is the material of choice for the electrification of the automotive fleet, and Constellium is well-positioned to support this transition with advanced products and solutions.

Renault Group has developed a closed-loop recycling process to bring manufacturing scrap from the stamping process directly back to Constellium, resulting in a reduced CO₂ footprint. Based on best practices to avoid mixing 5xxx and 6xxx alloys and to compact scrap for optimal logistics at Renault Group, the closed-loop process will recycle these alloys, so that they can be reused in Renault Group’s production without any loss of properties, and overall with no downcycling.

For the all-new Megane E-TECH Electric, Constellium supplies best-in-class aluminium Auto Body Sheet for outer panels from its Surfalex® product range, combining high strength with excellent surface quality and hemming properties, and for the inner panels from the forming optimized Formalex® product range.

“We are very excited to continue to collaborate with Renault Group on sustainable and efficient aluminium solutions. Together we will contribute to the circular economy within the automotive industry, while also helping both companies to meet their individual sustainability targets,” said Hervé Ribes, Director, Technical Customer Service Automotive for Constellium’s Packaging & Automotive Rolled Products business unit. “Further, converting R&D expertise to full-scale industrialization is in the DNA of Constellium. This successful collaboration between Renault Group and Constellium proves that it is working.”

“We are delighted to expand these activities with Constellium as part of our journey to carbon neutrality, commented Yvan Chastel, Expert Leader for Metals and Processes at Renault Group. “The closed-loop recycling we had first established for the former vehicles manufactured in Douai are now further optimized for the production volumes of the all-new Megane E-TECH Electric. This collaboration further demonstrates our capacity to be at the forefront of decarbonizing mobility by reducing CO₂ emissions throughout the life cycle of our vehicles.”

This news is a continuation of a long and successful partnership between the two companies on sustainable automotive aluminium solutions. Since 2021, Constellium and Renault Group have been working jointly on R&D projects for alloys and solutions that enable closed-loop recycling, such as in the ISA3 collaborative initiative with ESI Group, Institut de Soudure (Welding Institute), and the University of Lorraine.

Recycling is a key pillar of Constellium’s sustainability targets for 2030, and the closed-loop partnership with Renault Group supports the journey towards achieving them. The company is substantially expanding its recycling capacity, with a €130 million investment for a new recycling center at its facility in Neuf-Brisach, France, which is expected to provide an additional ~130kt of recycling capacity by 2025.

Constellium, a full-service supplier of rolled and extruded aluminium solutions for the global automotive market, supplies aluminium for 1 in 4 vehicles produced in Europe and the U.S. We help automakers produce lighter, safer and more fuel-efficient vehicles, as well as electric vehicles with greater range. Renault Group is supplied by Constellium’s ASI-certified facility in Neuf Brisach, France.

About Constellium

Constellium (NYSE: CSTM) is a global sector leader that develops innovative, value added aluminium products for a broad scope of markets and applications, including aerospace, automotive and packaging. Constellium generated €8.1 billion of revenue in 2022.
www.constellium.com

Forward-looking statements

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Jason Hershiser – Investor Relations
Phone: +1 443 988 0600
investor-relations@constellium.com

Delphine Dahan-Kocher – Communications
Phone: +1 443 420 7860
delphine.dahan-kocher@constellium.com

FAQ

What is the closed-loop recycling process announced by Constellium and Renault Group?

Constellium and Renault Group's closed-loop recycling process will recycle aluminum manufacturing scrap back into production, reducing CO₂ emissions and maintaining material properties.

How does the partnership with Renault Group impact Constellium's sustainability goals?

The partnership contributes to Constellium's sustainability targets for 2030 by enhancing recycling and supporting the circular economy in the automotive industry.

What financial investment is Constellium making to expand its recycling capacity?

Constellium is investing €130 million in a new recycling facility in Neuf-Brisach, France, which will increase its recycling capacity by approximately 130,000 tons by 2025.

How does Constellium's aluminum contribute to electric vehicles?

Constellium supplies lightweight, high-strength aluminum solutions that enhance the efficiency and range of electric vehicles like the Megane E-TECH Electric.