BMW forms a battery recycling alliance with SK Tech

BMW, the renowned German automaker, has taken a significant step towards promoting the circular economy with a new European battery recycling partnership with Singapore-based SK tes. This strategic move is part of BMW's broader commitment to sustainability and resource efficiency.

Dr. Nicolai Martin, who has been a member of the BMW AG Board responsible for purchasing and the supplier network since June 1, 2025, heads the sustainability efforts in BMW's supplier network. In a statement, Nadine Philipp, VP Sustainability Supplier Network at BMW, emphasised the promotion of the circular economy as an important strategic topic for the BMW Group.

The partnership aims to recover critical minerals, such as cobalt, nickel, and lithium, from used batteries. BMW will be directly involved in the recycling processes, with high-voltage batteries from its Europe-based facilities being shipped to SK tes for recycling.

SK tes uses a unique process to mechanically shred used batteries and concentrate them into black mass, a material created from battery scraps. This material will then be processed to recover the valuable minerals, which will be returned to BMW's supply chain to produce new batteries.

Redwood Materials, another partner in BMW's battery recycling efforts, aims to return 95% to 98% of critical minerals from the recycled batteries back to the battery supply chain.

Jörg Lederbauer, VP of Circular Economy, Spare Parts Supply, High-Voltage Battery, and Electric Powertrain at BMW, stated that partnerships like the one with SK tes increase efficiency in terms of the circular economy.

The closed-loop battery recycling partnership with BMW will expand globally, including to the US-Mexico-Canada region as early as 2026. BMW's recycling efforts extend beyond batteries and vehicles, as demonstrated by its long-standing recycling operations at the Recycling and Dismantling Center in Munich.

Vehicles used for testing that cannot be sold are dismantled using a standardized process at the Recycling and Dismantling Center in Munich, focusing on identifying reusable components and materials suitable for recycling.

The BMW Group's battery recycling partnerships are not limited to SK tes, as evidenced by the separate agreement with Redwood Materials. The first batteries produced with recycled raw materials will be used in BMW's next-generation "Neue Klasse" electric vehicles.

SK tes claims it can recover and recycle up to 99% of the materials from used batteries, contributing significantly to BMW's sustainability goals. This partnership is a testament to BMW's commitment to a more sustainable future, where resources are used more efficiently and waste is minimised.