Circular economy
BMW Group partners with PreZero to advance circular economy principles
Through a recently announced partnership, BMW Group will work with international circular economy company PreZero to enhance the circularity of the automaker’s business model for the recycling of end-of-life vehicles.
BMW Group signed a strategic cooperation agreement with PreZero, part of Schwarz Group, to substantially advance the circular economy across the European automotive industry. The signing took place at the Innovation Park Artificial Intelligence (IPAI) campus in Heilbronn, Germany – an international location for more than 5,000 people working on the development and application of artificial intelligence.
Through the collaboration, BMW Group aims to “develop a business model for the recycling of end-of-life vehicles, creating a closed loop for both materials and recycling”.
Two birds with one stone
BMW Group’s motivation for this initiative is twofold: firstly to support its sustainability ambitions, with “increasing the proportion of secondary materials in [BMW Group] products wherever reasonable and possible” a key goal for the group; and secondly to address current challenges in the automotive industry by reducing its dependence on external parties for raw materials.
This joint initiative is expected develop a viable business model for an innovative materials and recycling loop, systematically using end-of-life vehicles as a strategic source of materials. BMW Group believes that by establishing such a business model, it can make its supply chain more resilient and less vulnerable to supply shocks.
Initially, it will focus on extending the life cycle of vehicle components by keeping them in the loop as long as possible through continued use. Following on from that, the two companies are set to work together on creating innovative recycling processes that can recover more high-quality recycled materials such as steel, aluminium, plastics and battery raw materials.
In addition to sustainability and resiliency improvements, the project also has the potential to deliver significant cost benefits if it is able to reduce the levels primary raw materials needed going forward.
"The collaboration with PreZero is another milestone on the road to establishing the circular economy as a genuine business model,” commented Ralf Hattler, senior vice president of customer support and aftersales at BMW Group. “For the BMW Group, circularity is already a central element of our corporate strategy and a key driver of CO2 reduction and resource efficiency.”
He added: “Together with PreZero, we are creating the conditions needed to design a vehicle’s entire value chain in a way that keeps materials and components of the highest quality in the loop for as long as possible. Our goal is to significantly reduce the need for primary materials and make supply chains more resilient.”
A strategic move for PreZero
For PreZero, this latest move follows its acquisition of Re.Lion.Bat. Circular in September 2025. Launched as joint venture between mobility specialist LUEG and waste disposal specialist DEPPE Group, Re.Lion.Bat. Circular operates Europeʼs largest recycling facility for lithium-ion batteries, located in Meppen, Lower Saxony in Germany.
According to PreZero, the plant processes up to 30,000 tons of used batteries each year, and a planned expansion would see annual capacity grow to 60,000 tons.
“After acquiring Europe’s largest battery recycling facility last year, we are now taking the next step with the BMW Group towards establishing a functional circular economy in the automotive industry,” Carsten Dülfer, CEO of PreZero in Germany. “Together, we are developing scalable solutions that not only meet strict compliance and sustainability requirements but also drive the decarbonisation of the industry across Europe. In this way, we are closing the gap between automotive development and the realities of recycling.”
Knowledge is power
To achieve its goal of delivering a business model that will ensure comprehensive recycling of end-of-life vehicles, BMW Group has acknowledged that knowledge transfer will have a significant role to play.
BMW Group will share its “design for recycling” knowhow and insights gained from the recycling of end-of-life vehicles at its in-house Recycling and Dismantling Centre (RDC), as well as materials and manufacturing expertise.
Meanwhile, PreZero will share its knowledge of European material flows and sorting technologies, in addition to its expertise in battery recycling.
