(Reuters) - Franco-Italian automaker Stellantis ( STLA ) and French nuclear fuels firm Orano have dropped their planned joint venture to recycle electric car batteries, both companies said on Wednesday.

The two companies had signed a memorandum of understanding last year. The JV was to help recycle used electric vehicle batteries and scrap materials from Stellantis ( STLA ) gigafactories in Europe and North America, with production set to start in the first part of 2026.

"Stellantis ( STLA ) and Orano will not finalize the intended joint venture for recycling end-of-life electric vehicle batteries and scrap," the companies said, adding they are exploring other potential commercial relationships.

The deal would have given Stellantis ( STLA ), parent company of brands including Peugeot, Fiat and Jeep, additional access to the cobalt, nickel and lithium necessary for electrification and the energy transition.