Stellantis signed a memorandum of understanding with China-based Miracle Oruide Guangzhou Auto Parts Remanufacture on April 10. The Amsterdam-based carmaker is building a recycling network covering engines and EV batteries in China.
According to an announcement from Miracle Automation Engineering, Stellantis plans to invest in Miracle Oruide and hold 32% of the company's shares based on the MoU. Miracle Automation, whose business focuses includes intelligent equipment and lithium-ion battery recycling, owns 41% of Miracle Oruide.
Miracle Oruide currently targets the remanufacturing of internal combustion engines, according to the announcement. Its pilot program for electromechanical product refabrication is verified by the Chinese government.
The company said it has production bases in Guangzhou, Yangzhou, and Chongqing. They can recycle and remanufacture 50,000 car engines every year. Miracle Oruide added that it is developing technologies to remanufacture transmissions, new energy batteries, and engineering parts.
The MoU implies Stellantis will maintain a close relationship with Miracle Automation, building its recycling network more actively in China. The two companies signed an agreement for recycling and reusing batteries from Stellantis' vehicles at the end of last year.
China's EV market has taken off in recent years, reaching more than 6.88 million car sales last year. The issue of recycling batteries has grown essential as the first batch of decommissioned batteries will arise soon.
Miracle initiated China's first lithium-ion battery recycling online platform for the industry together with JDT and government agencies in early March. The company said the platform aims to facilitate a mechanism for the battery recycling market, driving the practice with technological innovation and digitalization.
