CEO Ola Källenius described the facility as a major step towards enhancing the sustainability of raw materials used in electric vehicles.

This initiative aligns with the EU's goal of phasing out fossil fuel-burning cars by 2035, emphasizing the importance of local battery production and recycling.

On October 21, 2024, Mercedes-Benz inaugurated Europe's first battery recycling plant in Kuppenheim, southern Germany, marking a significant milestone in the company's sustainability efforts.

Utilizing an innovative integrated mechanical-hydrometallurgical process, the plant is the first to combine mechanical and metallurgical processing methods for battery recycling.

The facility anticipates a recovery rate exceeding 96% for the materials processed, which will include key raw materials like lithium, nickel, and cobalt.

Mercedes invested tens of millions of euros in the factory, supported by nearly 17 million euros from the German Federal Ministry for Economic Affairs and Climate Action.

Recycling is essential for reducing waste and enhancing European autonomy in sourcing critical battery materials, which are largely imported.

The opening of the plant comes at a time when Europe's electric vehicle battery sector faces challenges, including declining sales and job cuts by manufacturers like Northvolt.

The plant is designed to recycle over 96 percent of battery materials, with an annual capacity to process approximately 2,500 tonnes, enough to produce around 50,000 new battery modules.

Referred to by production chief Jörg Burzer as a 'mine for the batteries of tomorrow,' the factory represents a crucial advancement towards a circular economy and increased resource independence.

Mercedes aims to decouple growth from resource consumption through this project, with Burzer stating that recycling will become more economically viable than sourcing raw materials from the market.

While the recycling project is currently not profitable, it is viewed as a strategically necessary step for the future of electric mobility.