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Thyssenkrupp and Novelis cooperate

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Platform for the circular economy

With a platform for the circular economy in the automotive industry, the two companies Thyssenkrupp Materials Services and Novelis want to set new standards for the recycling of used materials. The open platform will enable access to larger quantities of high-quality recycling materials.

Thyssenkrupp headquarters © thyssenkrupp

Thyssenkrupp Materials Services, the largest mill-independent materials distributor and service provider in the Western world with a broad portfolio of innovative digital supply chain solutions, and Novelis, provider of sustainable aluminum solutions and global market leader in aluminum rolling and recycling, have partnered to increase end-of-life vehicle recycling and increase the availability of valuable secondary materials that can be recovered from vehicles at the end of their life cycle.

Automotive Circularity Platform

By jointly developing a digital platform called the Automotive Circularity Platform (ACP), the companies aim to digitize the market for secondary materials from end-of-life vehicles and increase its transparency by creating an ecosystem with the common long-term goal of increasing the recycling rate of cars and reducing carbon emissions. ACP will be a digital marketplace that connects players along the entire end-of-life vehicle value chain and enables automotive suppliers to capture and reuse aluminum and other materials such as steel, plastics, glass, rubber and more.

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The first step is to create a prototype of the platform in order to fully test and evaluate it. The results of the proof-of-concept analysis will serve as a basis for thyssenkrupp Materials Services and Novelis to make improvements and explore the possibility of wider adoption and use by their respective industry partners.

Easy access to high-quality recycled material

"ACP is an important step towards a circular economy in the automotive industry. The open trading platform provides new access to end-of-life materials for companies committed to sustainability and the circular economy," says Michael Hahne, Vice President and General Manager Automotive, Novelis Europe. "ACP will not only contribute to the circular economy as a whole through optimized material flows, less waste to landfill and easier access to larger quantities of high-quality recycled materials, but also create a transparent and trustworthy point of contact for all stakeholders to develop and implement their own value-adding recycling processes."

Know-how from both sides

Infographic Automotive Circularity Platform (ACP) © Thyssenkrupp/Novelis

"thyssenkrupp Materials Services and Novelis have entered into a partnership in which the respective competencies of our companies, whose strengths complement each other in every respect, are optimally utilized," says Sebastian Smerat, Head of Customer Innovation at thyssenkrupp Materials Services. "thyssenkrupp Materials Services has extensive knowledge and experience in materials, digital supply chains and market access in a broad, complex sector. Novelis brings unique expertise in areas such as aluminum recycling, reuse processes and development of aluminum alloys with high recycled content. With the idea of developing an automotive circularity platform for aluminum, we at thyssenkrupp Materials Services are consistently pursuing the path of our sustainability strategy Beyond."

With the increasing spread of electric vehicles, the reduction of car emissions is taking a back seat and increasing efficiency in the supply chain and production is becoming the most important lever for decarbonizing the automotive industry. A circular ecosystem with unprecedented collaboration between all stakeholders will play a key role in helping the automotive industry achieve its climate targets.

Aluminum is suitable for recycling

For aluminum in particular, recycling is the epitome of sustainable practices, asCO2 emissions are reduced by around 95 percent compared to energy-intensive primary production. In addition, aluminum can be recycled an infinite number of times without losing its properties such as strength, lightness, durability and malleability. The advantages that the material offers are contributing to its increasing use in all industries that are striving for greater sustainability.

Cycle not yet closed

While closed-loop recycling systems for aluminum production scrap have become a proven sustainability practice in the automotive industry in recent years, the loop at the end of a vehicle's life cycle is not yet closed. The partnership between Novelis and Thyssenkrupp Materials Services is an important step towards a circular economy for aluminum in a market that is characterized by diverse opportunities and is on the cusp of exciting growth.

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