BMW Group details battery recycling and low-carbon materials for new X5
BMW Group details battery recycling and low-carbon materials for new X5
The BMW Group describes a lifecycle sustainability approach covering direct battery recycling at its Salching center, which will recover tens of tonnes of cell material a year at full capacity and return it to cell production in Parsdorf. For the new BMW X5, the company reports a roughly 40 percent cut in supply chain CO2e emissions, with about 50 percent of its flat steel from electric arc furnace production. The battery-electric iX5 60 xDrive uses secondary raw materials equal to 940 kilograms, and Gen6 cells cut CO2e per watt-hour by about 28 percent versus Gen5.
Direct mechanical battery recycling and secondary cobalt, lithium and nickel in cells signal growing demand for recovered battery metals and low-carbon steel and aluminium in automotive supply chains.
Key facts
| Companies | BMW Group, BMW AG, Encory, Interzero Group |
|---|---|
| Chemicals | copper, aluminium, platinum, rhodium, palladium, cobalt, lithium, nickel, steel, PET, CO2e |
| Capacity | Cell Recycling Competence Center in Salching to recover tens of tonnes of cell material a year at full capacity; around 940 kilograms of secondary raw materials in the BMW iX5 60 xDrive |
| Location | Unterschleißheim near Munich (Recycling and Dismantling Center); Salching, Lower Bavaria (Cell Recycling Competence Center); Parsdorf (Cell Manufacturing Competence Center); Munich (cell development); Plant Spartanburg (press shop) |
| Timing | 24.08.2026, since 1994, more than 25 years, 2026 series launch of the new BMW X5 |
| Partners | Encory, Interzero Group, recycling partners worldwide, cell manufacturers |
| End uses | automotive vehicles, battery cell production, BMW X5 series vehicle, BMW iX5 60 xDrive |
Market context
Lithium-ion battery cells rely on lithium, nickel and cobalt in their cathodes, while automakers use flat steel and aluminium for body structures. Demand for these metals is driven mainly by electric vehicle production, along with consumer electronics and grid storage, so recovered battery metals are increasingly valued alongside mined supply. Mechanical recycling, which physically separates cell material before recovery, is one route to returning black mass to cell makers and can reduce dependence on primary ore. Steel made in electric arc furnaces typically uses scrap and generally carries a lower carbon footprint than blast furnace steel, which makes it attractive to buyers tracking supply chain emissions. Moves like these can tighten demand for scrap and secondary metals, shift sourcing toward recyclers, and put pressure on suppliers to document emissions. Carbon accounting and recycled content requirements in vehicle programmes are becoming important factors in material selection and procurement.
Source: official release on bmwgroup.com. Summary and context written by Market Krystal.
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