The BMW Group has entered into a strategic partnership with circular economy expert PreZero to build a comprehensive recycling framework for end-of-life vehicles.
The cooperation agreement was signed at the Innovation Park Artificial Intelligence campus in Heilbronn, Germany. The collaboration aims to create a commercially viable closed-loop system for automotive materials. The strategy prioritizes extending the lifespan of vehicle components wherever possible, while introducing advanced recycling technologies to recover premium-grade materials once reuse is no longer practical. Key focus areas include steel, aluminium, plastics, and battery raw materials.
A Key Step in BMW’s Circular Strategy
Ralf Hattler, senior vice president of customer support and aftersales at BMW Group, called the alliance a major step forward in strengthening the company’s circular economy ambitions.
He emphasized that circularity already plays a central role in BMW’s corporate strategy, serving as a critical lever for reducing CO₂ emissions and improving resource efficiency. By working with PreZero, BMW aims to redesign the entire automotive value chain so that high-quality materials and components remain in circulation for as long as possible.
Expanding Recycling Capabilities
PreZero — part of the Schwarz Group — views the agreement as a natural extension of its expanding footprint in automotive recycling. In 2025, the company acquired Europe’s largest battery recycling facility, significantly strengthening its technical capabilities.
Chief executive Carsten Dülfer said the collaboration with BMW will help scale those capabilities across broader vehicle recovery operations. He noted that the goal is to develop industrial-scale solutions that comply with strict sustainability standards while supporting decarbonization efforts throughout Europe’s automotive sector.
Testing New Processes and Material Flows
As part of the agreement, the two companies will pilot and industrialize advanced dismantling and recycling technologies. They will also design new systems for managing material flows more efficiently. Both partners stress that the initiative aligns closely with the European Union’s circular economy objectives and its efforts to enhance industrial resilience.
BMW and PreZero believe the project could serve as a model for building a competitive, low-carbon automotive value chain across Europe.
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