Mercedes-Benz launches Europe’s first closed-loop battery recycling plant

Mercedes-Benz has inaugurated Europe’s first battery recycling plant featuring an innovative mechanical-hydrometallurgical process, marking a significant milestone in sustainable automotive production.

Located in Kuppenheim, Germany, the facility is designed to enable a true circular economy for electric vehicle (EV) batteries, making Mercedes-Benz the first global car manufacturer to close the battery recycling loop using an in-house plant.

With a recovery rate exceeding 96%, the plant retrieves essential battery materials like lithium, nickel, and cobalt, which can be reused in new battery production.

Through substantial investment, Mercedes-Benz aims to reduce the reliance on primary resources, reinforcing its commitment to sustainable manufacturing.

This move not only conserves valuable materials but also aligns with the company’s long-term goal of minimising environmental impact by reducing resource extraction and carbon emissions across its supply chain.

Ola K?llenius , Chairman of the Board of Management of Mercedes-Benz Group AG , commented: “Mercedes-Benz has set itself the goal of building the most desirable cars in a sustainable way.

“As a pioneer in automotive engineering, Europe’s first integrated mechanical-hydrometallurgical battery recycling factory marks a key milestone towards enhancing raw-materials sustainability.

“Together with our partners from industry and science, we are sending a strong signal of innovative strength for sustainable electric mobility and value creation in Germany and Europe.”

Innovative battery recycling process for maximum efficiency

The Kuppenheim battery recycling plant incorporates a groundbreaking combination of mechanical and hydrometallurgical recycling techniques, which operate at relatively low temperatures, peaking at 80°C.

This energy-efficient process consumes significantly less energy than the commonly used pyrometallurgy method. The initial mechanical process involves shredding used battery modules and sorting out materials like plastics, copper, aluminum, and iron.

The hydrometallurgical component focuses on recovering ‘black mass’, a concentration of battery-active metals, which are processed in stages to isolate valuable elements like cobalt, nickel, and lithium.

The end product is of high enough quality to be used directly in the production of new battery cells, ensuring that valuable materials return to the supply chain.

Olaf Scholz, Federal Chancellor of the Federal Republic of Germany, explained: “The future of the automobile is electric, and batteries are an essential component of this.

“To produce batteries in a resource-conserving and sustainable way, recycling is also key. The circular economy is a growth engine and, at the same time, an essential building block for achieving our climate targets.

“I congratulate Mercedes-Benz for the courage and foresight shown by this investment in Kuppenheim. Germany remains a cutting-edge market for new and innovative technologies.”

Green energy-powered facility

The eco-friendly battery recycling plant not only conserves raw materials but also operates in a carbon-neutral manner, a core principle of Mercedes-Benz’s sustainability strategy.

Powered entirely by renewable energy, the facility’s roof is equipped with a solar panel system capable of generating over 350 kilowatts of electricity. These efforts reflect the company’s dedication to reducing its carbon footprint throughout the battery lifecycle.

With an initial annual capacity to process 2,500 tonnes of battery material, the plant will supply resources for around 50,000 new battery modules for future Mercedes-Benz electric vehicles.

As the technology matures, the company aims to increase recycling volumes to meet the growing demand for EVs and battery materials.

Partnership with Primobius and German research institutions

The plant’s development was made possible through a strategic partnership with Primobius—a joint venture between SMS group and Neometals—and funding from Germany’s Federal Ministry for Economic Affairs and Climate Action.

Additionally, three German universities are collaborating with Mercedes-Benz on a research project focused on optimising the entire battery recycling process, from logistics to reintegration into manufacturing.

This collaborative initiative is anticipated to support the scaling of battery recycling infrastructure across Germany, contributing to the nation’s leadership in sustainable energy practices.

A comprehensive approach to battery sustainability

Mercedes-Benz’s holistic approach to battery recycling encompasses not only material recovery but also a broader commitment to circularity.

The company emphasises ‘Design for Circularity’, a philosophy incorporated from the earliest stages of battery development. The recently launched Mercedes-Benz eCampus in Stuttgart underpins this approach, focusing on designing batteries that are easier to recycle and reuse.

Beyond recycling, Mercedes-Benz offers reconditioned batteries as replacement parts and uses retired EV batteries in large-scale stationary energy storage projects through its subsidiary, Mercedes-Benz Energy.

This initiative supports grid stabilisation and renewable energy storage, giving batteries a second life in non-automotive applications.

As Mercedes-Benz leads the charge in sustainable battery production, the Kuppenheim battery recycling plant embodies the company’s vision of a circular economy within the automotive industry.