Mercedes-Benz has celebrated groundbreaking ceremony last week for a new battery recycling factory in Kuppenheim, Germany, cutting resource consumption and establishing closed-loop recycling of battery raw materials. The first stage of the plant, mechanical dismantling of electric vehicle batteries, is scheduled to start ramping up at the end of this year. Subject to the outcome of promising discussions with the public sector, a hydrometallurgy pilot plant will be established only a few months later.Mercedes-Benz is investing a double-digitM Euro amount in the construction of the balance sheet CO₂-neutral plant, which is funded by the German Federal Ministry of Economics and Climate Protection as part of a scientific research project. This investment strengthens the role of the Kuppenheim site within the global Mercedes-Benz production network and marks a decisive step for Mercedes-Benz’s sustainable business strategy as it moves towards going Electric Only.In future, the Mercedes-Benz battery recycling factory in Kuppenheim will cover every step: From dismantling at the module level, to shredding and drying and processing of battery-grade materials. The hydrometallurgy process with a recovery rate of more than 96% enables a true circular economy of battery materials. Mercedes-Benz is cooperating with technology partner Primobius (joint venture of the German mechanical engineering company SMS group and the Australian project developer Neometals). As part of the overarching scientific research project, the entire process of battery recycling is also taken into account: From the development of logistics concepts, through the sustainable recycling of valuable raw materials, to the reintegration of recyclates into the production of new batteries. Thus the partners are making an important contribution to the future scaling of the battery recycling industry in Germany.The pilot plant is expected to have an annual capacity of 2,500 metric tons. The recovered materials will be fed back into the recycling loop to produce more than 50,000 battery modules for new Mercedes-Benz models. Based on the findings of the pilot factory, production volumes could be scaled up in the medium to long term.