The More, The Merrier

Find out all you need to know about our circular economy activities with insights from Jean-Philippe Bahuaud, CEO of THE FUTURE IS NEUTRAL .

Renault Group launched in October 2022 The Future is NEUTRAL, a holding company created from its environmental activities and the first 360 circular economy enterprise in the automotive world. Our common goal is to provide the automotive industry with closed-loop recycling solutions at every stage of the vehicle life cycle, from the supply of parts and materials to the end of the car's life.

Although 85% recyclable, cars contain only 20-30% recycled materials. The Future is NEUTRAL aims to reverse this trend, so that more recycled materials are fed back into the production of new cars.

We all have in mind the image of the athlete who becomes a champion by surpassing his opponents through strength, endurance, and speed. This metaphor mirrors the current business landscape, dominated by a linear model where companies strive to reach a final destination while battling fierce competition. Yet, as we face the monumental challenge of climate change, it's clear that this approach is no longer sufficient.

The shift from a traditional linear model—characterized by raw material extraction, production, and disposal—to a circular model is a transformative challenge that requires collaboration and collective effort. This is the essence of our commitment to the third phase of our Renaulution strategic plan, aptly named Revolution.

Revolutionizing the Automotive Industry

The automotive industry stands at a critical crossroads. The urgency of climate action demands a successful energy transition in all industries to reduce their reliance on fossil fuels, while competitiveness is an absolute must to develop solutions on the long-term. While decarbonization has been a primary focus, we must now recognize that resource management will be the defining topic of the next decade. As natural resources dwindle—copper, lithium, and nickel are under unprecedented pressure due to soaring demand—we must act decisively to develop new supply sources, such as closed-loop systems, while keeping these vital resources within Europe’s automotive sector. This includes combating downcycling and the offshoring of waste management.

To tackle such formidable challenges, we must forge bold resolutions. The Future Is Neutral was established to serve all players in the European automotive ecosystem, from OEMs and OESs to after-sales networks and individual consumers. Our innovative approach hinges on fostering partnerships and collaboration that transcend traditional competitive boundaries, signalling a structural evolution in the industry.

A Journey Toward Circularity

Circularity is not a journey we can embark on alone. That’s why we’ve strengthened our partnership with SUEZ , now a strategic shareholder in The Future Is NEUTRAL. Together, we aim to combine our expertise and industrial capabilities in automotive and waste management to position The Future Is NEUTRAL as a frontrunner in the automotive circular economy.

Our vision is to create a “car-to-car” economy: optimizing the lifespan of existing vehicles while utilizing end-of-life cars as secondary resources for new production. With 11 million cars reaching their end of life in Europe each year, we possess an abundant reservoir of resources to meet a significant portion of industry needs.

This innovative business model necessitates a paradigm shift in how the industry recycles materials, dismantles parts, repairs vehicles, and manages end-of-life processes. It’s essential to offer solutions that are both environmentally sustainable and economically viable. By massifying the flow of parts and materials found in dismantling centers, repair shops, and sorting facilities, we can drive meaningful change. Key to this transformation will be the adoption of reverse logistics and the digitalization of processes to optimize collection and enhance the flow of revalued materials.

Furthermore, we must rethink how vehicles are conceived—incorporating more recycled materials, ensuring repairability, and designing for efficient dismantling to recover reusable parts and recyclable materials. This vision is not a distant dream; it’s a pragmatic pathway to establishing a car-to-car economy that creates sustainable value for all stakeholders.

By leveraging the combined expertise of Renault Group and SUEZ within The Future Is NEUTRAL, we are pioneering a disruptive approach that serves the entire automotive industry. We believe that achieving true circularity requires a systemic transformation—a vital shift that not only addresses current challenges but also paves the way for a resilient and sustainable future.

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The Future Is NEUTRAL provides solutions that are suited to the car’s lifecycle and sized for industrial-scale operations:

• Supply of recycled materials: for new car production, including steel, aluminium, plastics, copper, platinoids. - Supply of reused or reconditioned parts, as well as electric batteries repair;
• Collection, treatment of end-of-life vehicles and batteries, as well as valorisation of parts and materials for recycling.

The Future Is NEUTRAL’s activities cover the entire value chain and leverage the expertise of all its operating branches, each a benchmark player in its respective field:

1. GAIA: pioneer in closed-loop automobile material recycling and expert in electric traction battery recycling.
2. BOONE COMENOR METALIMPEX: worldwide reference of metal waste recycling.
3. THE REMAKERS: pioneer of automotive remanufacturing.
4. INDRA: the French reference of end-of-life vehicles’ management.