BMW Group and PreZero create circular economy for end-of-life vehicles

The BMW Group and PreZero, the international circular economy company that forms parts of the Schwarz Group, signed a strategic cooperation agreement on 5 February 2026 at the IPAI Campus (Innovation Park Artificial Intelligence) in Heilbronn, Germany.

From end-of-life vehicle to a source of materials

The aim is to develop a business model for the systematic recycling of end-of-life vehicles and to establish closed material cycles in the European automotive industry. At the same time, the current challenges facing the automotive industry will be addressed: the aim is to reduce dependence on raw materials and make supply chains more resilient. This is precisely where the joint initiative comes in: by developing a sustainable business model for an innovative material and recycling cycle, end-of-life vehicles are to be used as a strategic source of materials. Initially, vehicle components are to be reused and thus kept in circulation for as long as possible. In a further step, the aim is to use innovative recycling processes to obtain more high-quality recycled materials and raw materials for further use. This would significantly reduce the demand for primary raw materials.

Ralf Hattler, Senior Vice President Customer Support and Aftersales at the BMW Group: “The collaboration with PreZero is another milestone on the road to establishing the circular economy as a genuine business model. […] Our goal is to significantly reduce the demand for primary materials and make supply chains more resilient.”

Carsten Dülfer, CEO of PreZero Germany, emphasises the significance for the market: “After acquiring Europe’s largest battery recycling facility last year, we are now taking the next step with the BMW Group towards establishing a functional circular economy in the automotive industry. […] In this way, we are closing the gap between automotive development and the realities of recycling.”

The foundation of the collaboration

The collaboration focuses on ‘reuse’ (reuse of components) and ’recycle’ (recovery of steel, aluminium, plastics, battery raw materials). The BMW Group contributes expertise in ‘design for recycling’ and its own recycling and dismantling centre, while PreZero contributes its know-how in European material flows and sorting technologies.