Reconomy acquires majority stake in LibCycle via its RLG brand

Reconomy has announced that it has acquired a majority stake in LibCycle through Reverse Logistics Group (RLG) by Reconomy.

Munich based LibCycle provides an all in one logistics solution for defective lithium-ion batteries, including specialist packaging, loading, transportation, storage and hazardous waste handling. It operates over 30 active cross-docking facilities across key European markets. Its customer base includes leading manufacturers and battery recyclers.

The acquisition of a majority stake in LibCycle strengthens RLG’s advanced logistics infrastructure and data driven tracking systems and materially enhances RLG’s take back and collection capabilities. These take back schemes ensure that materials such as lithium-ion batteries are properly collected, processed and transported to manufacturers, retailers or third parties for recycling, reuse or disposal. 

Take back schemes are typically operated through producer responsibility organisations (PROs) and RLG is a trusted operator of PROs across a wide range of regulated product categories in multiple jurisdictions. One such PRO is Rebat, Germany’s largest take back system for the collection, return and recycling of all types of batteries, with over 65,500 collection points and more than 10,000 producers.

The transaction comes as the first generation of electric vehicles reaches end of life, bringing increasing volumes of used batteries and new material streams onto the market. At the same time, new EU Battery Regulations are expanding Extended Producer Responsibility (EPR) requirements to industrial and automotive batteries, increasing the need for robust, compliant collection and recovery infrastructure. With the EU forecasting a 14 fold increase in lithium-ion battery use by 2030, an efficient ecosystem is essential to ensure valuable materials are recovered and returned to the supply chain.

Guy Wakeley, chief executive of Reconomy, commented: ‘This is an important milestone that comes at a critical moment for the European battery circular economy, with growing volumes of end of life batteries coming onto the market and regulation evolving rapidly. This transaction positions us well to help more businesses keep valuable materials in circulation, meet compliance requirements, lower costs and emissions, while also strengthening our position in our core international markets.’

Patrick Wiedemann, chief executive, of Reconomy’s Comply division, said: ‘This acquisition strengthens RLG’s Comply Loop by adding advanced EV battery recycling logistics to our portfolio. Building on our successful partnership with LibCycle, we can now offer producers, retailers and recyclers safe and more efficient recovery solutions for lithium-ion batteries. As a leading operator of PROs with a global network of over 40 schemes, RLG is uniquely positioned to drive sustainability in the fast growing e-mobility sector. Together, we become a global leader connecting the automotive industry with the battery downstream processors, cementing our leading position in automotive workshop disposal solutions.’

Philipp Brunotte, co-founder and managing director of LibCycle, said: ‘We have made it our mission to make the circular economy of defective lithium-ion batteries more efficient through our all in one logistics service. This transaction was a logical next step for our business. By combining our expertise with RLG’s 30 years of global experience and regulatory know how advanced logistics, we can strengthen our customer offering and accelerate growth.’