How BMW is Boosting the Circular Economy with Battery Tech

The electrification of the automotive industry is accelerating, and manufacturers are increasingly focusing on improving the sustainability of their processes.

BMW has emerged as a leader by establishing an advanced closed-loop battery recycling system.

This system not only disposes of but also repurposes critical raw materials from high-voltage batteries.

In collaboration with the SK tes — a key provider of technology lifecycle solutions — BMW initiated a landmark pan-European venture in 2022.

This partnership focuses on the sustainable recovery and reuse of valuable battery components such as cobalt, nickel and lithium.

The primary goal is to feed these recovered materials back into the production cycle, creating new high-voltage batteries.

This initiative is part of BMW's broader strategy to expand its sustainable practices across different regions, including plans to bring this closed-loop system to the US-Mexico-Canada region by 2026.

Strategic collaboration with SK Tes

BMW's partnership with SK Tes isn't solely about recycling.

It's about perfecting the circular approach to battery production and disposal.

The process used by BMW and SK Tes has received multiple accolades for its sustainability and innovative approach, such as the Business Intelligence Group’s Sustainability Service of the Year and the UN Global Compact’s Apex Award.

High-voltage batteries that have reached the end of their life cycle are transported from across BMW’s European markets to SK tes.

These batteries undergo a meticulous recycling process where they are first mechanically shredded to produce a substance known as black mass.

This contains concentrated metals, which are then extracted using a sophisticated chemical procedure called hydrometallurgy.

The metals retrieved, particularly nickel, lithium and cobalt, are critical to the manufacturing of BMW’s new GEN 6 drive train.

This model of circular practices not only aids in reducing waste but also ensures that BMW’s operations are sustainable and environmentally conscious.

"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."

Embodying the principles of a circular economy

BMW’s commitment to the circular economy is deep-rooted and multifaceted.

The company adheres to the principles of Re:Think, Re:Duce, Re:Use and Re:Cycle, focusing on each stage of a vehicle's life from design and production to its eventual recycling.

One highlight of BMW's approach is its Recycling and Dismantling Centre which has been operational for over three decades.

Here, the company has honed its ability to recover parts and materials effectively.

The overarching strategy is to establish a robust closed-loop system that allows for materials to be continually reused and recycled, thus minimising waste and environmental impact.

Designing vehicles with the end in mind, BMW ensures that crucial components like batteries and electronics can be efficiently reclaimed and re-entered into the manufacturing cycle.

This not only conserves resources but also positions BMW as a vanguard in the automotive industry’s shift to a more sustainable and resource-efficient future.

"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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