The BMW Group and PreZero, the international circular economy company that forms parts of the Schwarz Group, are taking an important step towards a future based on circular principles. At the IPAI (Innovation Park Artificial Intelligence) campus in Heilbronn, Germany, the two companies signed a strategic cooperation agreement to advance the circular economy across the European automotive industry. The aim of the collaboration is to develop a business model for the recycling of end-of-life vehicles, creating a closed loop for both materials and recycling.

The cooperation between the BMW Group and PreZero seeks to harness the strategic and economic potential of the circular economy for recycling end-of-life vehicles, while simultaneously tackling the automotive industry’s current challenges. Going forward, the goal is to reduce dependence on raw materials and make supply chains more resilient.

Initially, a vehicle’s components will be kept in the loop for as long as possible through continued use. As a next step, innovative recycling processes will recover more high-quality recycled materials and raw materials. The new approach is also expected to significantly reduce the need for primary raw materials.

Ralf Hattler, Senior Vice President Customer Support and Aftersales BMW Group, summarises the importance of the cooperation as follows: “The collaboration with PreZero is another milestone on the road to establishing the circular economy as a genuine business model. For the BMW Group, circularity is already a central element of our corporate strategy and a key driver of CO2 reduction and resource efficiency. 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.”

Carsten Dülfer, CEO of PreZero in Germany, underlines the significance for the market: “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. 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.”