Automobile company Stellantis (NYSE:STLA) and nuclear energy firm Orano announced a joint venture agreement to recycle vehicle batteries and scrap from giga factories in Europe and North America. According to the announcement, the JV will leverage Orano’s low-carbon technology, which they said is efficient for recycling materials from lithium-ion batteries and manufacturing new cathode materials.
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The two companies said the recycled materials will be turned into a material known as “black mass” or “active mass.” Furthermore, the materials will be produced in Orano’s hydrometallurgical plant to be built in Dunkirk, France. Per the announcement, the recycled product will be reusable in car batteries.
Through the JV, Stellantis will be able to meet a European Union battery directive to use recycled batteries in new products.
What is the Projection for STLA Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on STLA stock based on five Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average STLA price target of $25.51 per share implies 36.45% upside potential.