German automaker BMW Group and PreZero, part of the Germany-based Schwarz Group and one of Europe's leading circular economy companies, have signed a strategic cooperation agreement to develop a closed-loop recycling model for end-of-life vehicles.

As reported by Automotive Logistics, the partnership aims to extend the lifespan of vehicle components whilst recovering high-quality secondary materials — including steel, aluminium, plastics and battery raw materials — to reduce dependence on primary raw material sources and strengthen supply chain resilience.

Ralf Hattler, senior vice president of customer support and aftersales at BMW Group, said: "The collaboration with PreZero is another milestone on the road to establishing the circular economy as a genuine business model. For the BMW Group, circularity is already a central element of our corporate strategy and a key driver of CO2 reduction and resource efficiency."

He added: "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. Our goal is to significantly reduce the need for primary materials and make supply chains more resilient."

The agreement was signed at the Innovation Park Artificial Intelligence campus in Heilbronn, Germany. The initiative will initially focus on component life cycle extension before advancing to innovative recycling processes capable of recovering greater volumes of high-quality materials.

BMW Group will contribute its "design for recycling" expertise and knowledge from its in-house Recycling and Dismantling Centre, while PreZero will bring its understanding of European material flows, sorting technologies and battery recycling.

Explore the full details of the BMW Group and PreZero circular economy partnership.