Closed-Loop Systems: BMW, SK tes, & the Future of Sustainable Battery RecyclingClosed-Loop Systems: BMW, SK tes, & the Future of Sustainable Battery Recycling
BMW expands its sustainability efforts with a new partnership with SK tes to recycle high-voltage batteries, recovering valuable materials like cobalt, nickel, and lithium for reuse in new battery production.

As the adoption of electric vehicles (EVs) accelerates, the sustainable management of batteries has become a pressing priority. Closed-loop battery recycling systems, which recover and reuse battery materials, play a pivotal role in conserving resources and reducing environmental impact. By creating a self-sustaining cycle of production and recycling, these systems ensure that used batteries become valuable raw material sources. With a new recycling partnership, BMW has taken a significant step forward in this area.
BMW expands closed-loop recycling with SK tes
After successfully implementing a closed-loop recycling system in China through its joint venture with BMW Brilliance Automotive (BBA) in 2022, BMW has broadened its efforts. The company has launched a pan-European partnership with SK tes, focusing on recovering critical materials like cobalt, nickel, and lithium from end-of-life batteries and reintegrating them into the production of new batteries. The initiative is slated for expansion into the US-Mexico-Canada region by 2026, underscoring BMW’s global commitment to sustainability.
“The promotion of circular economy is an important strategic topic for the BMW Group,” stated Nadine Philipp, Vice President Sustainability Supplier Network at BMW AG. “The development of recyclable products, the increase of secondary materials in our components, and the closing of loops play an equally important role. And by the means of circular economy, we are also increasing our resilience in the supply chains.”

Metal fraction after recycling process. Courtesy of BMW Group.
Recycling involves shredding used batteries to create black mass, a material rich in valuable metals. Through hydrometallurgy, these metals are extracted and reintegrated into battery manufacturing. This system is integral to BMW’s production of the GEN 6 drivetrain. “Partnerships like this increase our efficiency in terms of the circular economy. In the closed-loop process, all partners mutually benefit from their experiences,” stated Jörg Lederbauer, Vice President Circular Economy, Spare Parts Supply High Voltage Battery and Electric Powertrain at BMW AG.
With partnerships like the one with SK tes, BMW is reducing its environmental footprint and helping to establish a more sustainable and resilient supply chain for the EV industry. As the demand for EVs grows, adopting closed-loop systems will be key in meeting the challenge of resource scarcity and waste management. Looking ahead, circular economy practices will drive innovation, ensuring that used batteries play an essential role in powering the future of mobility.
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