BMW: Driving Circular Automotive Supply Chains
As the automotive industry shifts towards electrification, manufacturers are increasingly adopting circular practices to make the most of resources and reduce waste.
BMW leads the charge by building a comprehensive closed-loop recycling system for high-voltage batteries. The innovative approach ensures raw materials like cobalt, nickel and lithium are reused to create new batteries, minimising environmental impact.
BMW’s journey towards circularity took a significant leap in 2022 when it developed a closed-loop recycling system through its MW Brilliance Automotive Joint Venture (BBA) in China.
In 2024, this initiative expanded with a pan-European partnership with SK TES, a technology lifecycle solutions provider. Together, the companies developed a robust recycling process to recover critical materials from used batteries.
The process begins by collecting high-voltage batteries from BMW’s development, production and European markets that have reached the end of their lifespan. These batteries are sent to SK TES, where they are mechanically shredded to produce "black mass", a concentrated material containing valuable metals.
Using a chemical process called hydrometallurgy, cobalt, nickel and lithium are extracted and refined into high-quality raw materials. These are then reintegrated into the production cycle to manufacture new batteries, including those used in BMW’s next-generation GEN 6 drive trains.
Jörg Lederbauer, Vice President of Circular Economy, Spare Parts Supply High Voltage Battery and Electric Powertrain at BMW, emphasises the value of collaboration in these efforts: "Partnerships like this increase our efficiency in terms of the circular economy. In the closed-loop process, all partners mutually benefit from their experiences."
Expanding circular economy practices globally
BMW’s commitment to sustainability doesn’t stop at Europe. By 2026, the company plans to extend its closed-loop battery recycling system to North America, making its operations more globally interconnected and sustainable. This expansion aligns with BMW’s broader strategy of embedding circular economy principles throughout its value chain.
The company’s approach is guided by the principles of Re:Think, Re:Duce, Re:Use and Re:Cycle. Every stage of the vehicle lifecycle—from design and production to recycling and reuse—is engineered to conserve resources.
BMW vehicles are designed with end-of-life recyclability in mind, ensuring that key components like batteries and electronics can be effectively recovered and reused.
A cornerstone of this strategy is the BMW Group Recycling and Dismantling Centre, which has driven innovation in parts and materials recycling for over 30 years. This centre has not only improved recycling processes but also contributed to the company’s goal of reducing waste and environmental impact.
"The promotion of circular economy is an important strategic topic for the BMW Group," says Nadine Philipp, Vice President Sustainability Supplier Network at BMW.
"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're also increasing our resilience in the supply chains."
Closing the loop on battery production
BMW’s collaboration with SK TES showcases how technology and partnerships can drive progress in sustainable supply chains. SK TES’ award-winning recycling methods demonstrate how innovation can transform waste into opportunity.
By ensuring that secondary raw materials are effectively recovered and reused, BMW not only reduces its environmental footprint but also strengthens the resilience of its supply chains in an increasingly resource-constrained world.
As the automotive sector continues its electrification journey, BMW’s closed-loop recycling system sets a benchmark for sustainability and innovation.
By keeping valuable materials in circulation and minimising waste, the company paves the way for a greener, more resource-efficient future for the industry.
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