BMW and PreZero partner to drive closed-loop vehicle recycling

The BMW Group has joined forces with circular economy specialist PreZero to develop a comprehensive recycling model for end-of-life vehicles.

A strategic cooperation agreement was signed at the Innovation Park Artificial Intelligence campus in Heilbronn, Germany to develop a commercially viable closed loop for automotive materials. Components will first be kept in use for as long as possible, while innovative recycling processes will be developed to recover high-quality recycled materials once reuse is no longer feasible. Steel, aluminium, plastics and battery raw materials have been identified as priority streams.

Milestone

Ralf Hattler, senior vp customer support and aftersales at BMW Group, described the partnership as a milestone for the company’s circular strategy.
‘Circularity is already a central element of our corporate strategy and a key driver of CO₂ reduction and resource efficiency,’ he says. ‘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.’
PreZero, part of the Schwarz Group, sees the agreement as a logical extension of its growing role in automotive recycling. In 2025 the company acquired Europe’s largest battery recycling facility.
Ceo Carsten Dülfer says the BMW partnership would help translate that capability into wider vehicle recovery. ‘We are developing scalable solutions that not only meet strict compliance and sustainability requirements but also drive the decarbonisation of the industry across Europe.’

New approaches

Under the agreement, the partners will jointly test and industrialise advanced dismantling and recycling processes, while also developing new approaches to material-flow management. Both companies stress the initiative is aligned with the EU’s circular economy strategy and its push to enhance strategic resilience. They believe the project can become a blueprint for a competitive, low-carbon automotive value chain across Europe.