Mercedes-Benz officially opened a new plant for recycling electric vehicle batteries in Kuppenheim, Germany, which the company’s CEO, Ola Kallenius, described as a “key milestone” for enhancing sustainability in the sector.
The facility will have the capacity to recycle 2,500 tonnes of materials annually, sufficient to produce around 50,000 batteries for the automaker’s electric models. Kallenius emphasized that this initiative is vital for improving the sustainability of raw materials.
Chancellor Olaf Scholz, who attended the inauguration, highlighted the importance of recycling for electric vehicle batteries.
He stated, “The circular economy is a growth engine and an essential component for achieving our climate targets.”
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With an EU deadline looming to phase out fossil fuel-burning cars by 2035, there is increasing emphasis on the production and recycling of electric vehicle batteries in Europe.
Recycling not only reduces waste but also aims to enhance European self-sufficiency in battery production, given that key materials like cobalt, nickel, and lithium are primarily sourced from outside the region.
Mercedes has invested tens of millions of euros in this new plant, which can recycle over 96 percent of battery materials.
The facility manages the entire recycling process, from shredding battery modules to drying and processing materials.
Critical metals are extracted individually through a chemical process for use in new battery cells, and the method employed at the plant is noted for being more energy-efficient and producing less waste than other facilities in Europe.
This development comes as a rare piece of good news for Europe’s electric vehicle battery sector, which has faced challenges due to declining sales.
For instance, Swedish battery manufacturer Northvolt recently announced a reduction of its workforce by 25 percent in Sweden due to financial difficulties and a decrease in demand.
Mercedes, like many other German automakers, has also faced headwinds, leading the company to lower its sales outlook last month amid weak demand in the crucial Chinese market.