BMW Group said it has entered into a strategic cooperation with PreZero, the recycling and waste management arm of the Schwarz Group, as the automaker steps up efforts to embed circular economy principles across its European operations.
Under the partnership, BMW and PreZero aim to develop a scalable business model for recycling end-of-life vehicles, creating a closed loop for materials and components across the automotive value chain. The initiative applies to vehicles of all powertrain types, not just battery-electric models, and is intended to reduce reliance on primary raw materials while strengthening supply-chain resilience.
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“The collaboration with PreZero is another milestone on the road to establishing the circular economy as a genuine business model,” said Ralf Hattler, senior vice president for customer support and aftersales at BMW Group. Circularity is already a central element of BMW’s corporate strategy and a key lever for cutting CO2 emissions and improving resource efficiency, he added.
The cooperation will begin with a focus on “design for recycling,” with PreZero supporting BMW in making future vehicle models easier to dismantle and recycle. End-of-life vehicles will also be treated as a strategic source of materials. Components will first be reused where possible, such as for spare parts, before advanced recycling processes are applied to recover high-quality secondary raw materials.
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BMW said the approach is designed to keep materials and components of the highest quality in circulation for as long as possible, significantly reducing demand for newly mined resources and improving the robustness of its supply chains amid global volatility.
PreZero, which ranks among the world’s ten largest waste management companies with annual revenue of about 3.9 billion euros, has been expanding its capabilities in automotive recycling. According to Germany’s Handelsblatt, the company has strengthened its position through acquisitions and partnerships, including the purchase of battery recycler Re.Lion.Bat Circular last year.
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That facility, located in Meppen in northern Germany, processes lithium-ion batteries from electric vehicles and power tools. Batteries are shredded and separated into plastics, ferrous and non-ferrous metals and black mass, with the latter sent to specialist processors in Asia and North America for further refinement.
The BMW–PreZero partnership comes as European automakers intensify efforts to close material loops, reduce exposure to volatile raw material markets and comply with increasingly stringent environmental and recycling regulations.