BMW Group and PreZero launch circular economy partnership

BMW Group and PreZero announce a strategic partnership to develop closed-loop recycling for end-of-life vehicles across Europe. Learn what it means.

BMW Group and circular economy company PreZero have announced a strategic partnership aimed at accelerating the transition of Europe’s automotive industry toward closed-loop material systems. The agreement was signed in Germany, at the Innovation Park Artificial Intelligence (IPAI) campus in Heilbronn, and focuses on the recycling of end-of-life vehicles and the creation of circular material cycles.

At the heart of the initiative is a shift in how end-of-life vehicles are treated. Rather than being viewed solely as waste, these vehicles are to become a long-term source of secondary raw materials. The planned approach follows a clear sequence: components are to remain in use for as long as possible, before advanced recycling processes are applied to recover high-quality materials. The focus is on steel, aluminium, plastics and battery-related raw materials.

For BMW Group, the cooperation is closely tied to its corporate and decarbonisation strategy. The company positions circularity as a central pillar of its long-term planning, linking reduced reliance on primary resources with greater supply chain resilience and lower CO₂ emissions across the vehicle life cycle. As part of the partnership, BMW contributes its design-for-recycling expertise and practical experience from its Recycling and Dismantling Centre, where dismantling and recovery processes have been refined over decades.

PreZero brings complementary strengths to the collaboration. With extensive knowledge of European material flows, sorting technologies and battery recycling, the company is well placed to translate circular economy principles into operational solutions. The partnership reflects PreZero’s broader ambition to combine environmental responsibility with economically viable recycling models.

Importantly, the cooperation is intended to move beyond pilot concepts. BMW Group and PreZero state that innovative recycling processes and new approaches to material flow management will be tested and developed to industrial maturity. This ambition aligns with the direction of European policy, which increasingly emphasises higher recycling rates and the systematic reuse of materials from end-of-life vehicles.

Looking ahead, the partners expect their joint effort to reduce dependence on primary raw materials while strengthening the competitiveness of the European automotive sector. By treating circularity not only as an environmental objective but as a viable business model, the collaboration is positioned as a step toward a more resilient industry.