How BMW is Innovating Closed-Loop Battery Recycling
As the global shift towards electric vehicles gains momentum, automakers are not only focused on innovating mobility but also on enhancing sustainability within their operations.
This drive towards sustainability is crucial, given the rising demand for raw materials necessary for battery production and the environmental impact associated with their extraction.
Leading the charge in sustainable practices is BMW, which has established a significant advancement in the automotive sector by developing a comprehensive closed-loop recycling system.
This initiative is designed to repurpose the raw materials from high-voltage batteries, a key component in electric vehicles (EVs).
The inception of this closed-loop system traces back to 2022, under the auspices of the BMW Brilliance Automotive Joint Venture (BBA) in China.
BMW expanded the scope of this initiative in 2024 by incorporating the battery creation process itself, marking a significant evolution from mere disposal to a full-cycle sustainability model.
The company introduced a pan-European partnership, teaming up with SK tes—a prominent player offering innovative lifecycle solutions for technology products.
This collaboration has been pivotal in developing specialised recycling processes to reclaim valuable elements such as cobalt, nickel and lithium from depleted batteries.
These reclaimed materials are then reintegrated into the production cycle to manufacture new batteries, showcasing a remarkable example of sustainable material management.
BMW plans to bring this innovative recycling approach to the US-Mexico-Canada region by 2026.
Refining recycling techniques with SK tes
BMW's partnership with SK tes exemplifies its proactive role in furthering recycling processes.
This cooperation has not only fostered enhanced resource efficiency but has also earned global recognition, netting awards such as the Business Intelligence Group’s Sustainability Service of the Year and the UN Global Compact’s Apex Award.
At the heart of this operation, BMW gathers non-operational high-voltage batteries from across European markets, which are then forwarded to SK tes for processing.
Initially, these batteries undergo mechanical shredding, producing a concentrated substance known as black mass.
Rich in metals, this material undergoes a sophisticated chemical process, hydrometallurgy, to extract essential metals like nickel, lithium and cobalt.
These metals are then repurposed for crafting BMW’s new GEN 6 drive trains.
"Partnerships like this increase our efficiency in terms of the circular economy," adds Jörg Lederbauer, Vice President Circular Economy, Spare Parts Supply High Voltage Battery and Electric Powertrain at BMW AG.
"In the closed-loop process, all partners mutually benefit from their experiences."
Embedding circular economy principles
The BMW Group’s commitment to circular economy principles is enacted through its Re:Think, Re:Duce, Re:Use and Re:Cycle initiatives, all aimed at maximising resource preservation throughout the vehicle’s lifecycle—from design and production through to recycling and reuse.
BMW Group’s Recycling and Dismantling Centre has been at the forefront of recycling innovations for more than three decades.
This facility underscores BMW’s strategy to create closed-loops in material usage, thereby minimising waste and mitigating environmental impact.
Focused on future-ready designs, BMW ensures that automobiles are created with end-of-life recyclability in mind, particularly for critical components like batteries and electronics, which are crucial for effective material recovery and subsequent reuse.
"The promotion of circular economy is an important strategic topic for the BMW Group," says Nadine Philipp, Vice President Sustainability Supplier Network at BMW AG.
"The development of recyclable products, the increase of secondary materials in our components, and the closing of loops play an equally important role.
"And by the means of circular economy we are also increasing our resilience in the supply chains."
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