Mercedes-Benz’s China unit is tapping China’s largest battery maker, CATL, and two main battery materials recyclers – GEM Co. and Brunp Recycling Co. — to recycle retired batteries utilized in electrified automobiles. 

The 4 firms will type a so-called closed-loop battery recycling mission, based on a memorandum of understanding signed Monday, GEM and Brunp stated on their web sites. 

Mercedes-Benz China will hand over retired batteries as soon as used to energy EVs and plug-in hybrids to GEM and Brunp, which is able to retrieve key uncooked supplies together with nickel, cobalt, manganese and lithium. 

The 2 recycling firms will ship supplies to CATL to construct new batteries for Mercedes-Benz’s electrified automobiles. 

The deal underscores how automakers and suppliers are racing to safe uncooked supplies utilized in EV batteries because the business transitions from fossil fuels to new power sources. Nickel, cobalt and lithium costs lately have soared worldwide in anticipation of rising demand for EVs and the batteries that propel them.  

The 4 firms will even cooperate and conduct “in depth and in-depth exploration and cooperation surrounding battery-recycling know-how and enterprise fashions,” GEM and Brunp famous.

Mercedes-Benz, with three way partnership companion BAIC Motor Co., produces a variety of gasoline automobiles and 4 full electrical crossovers – the EQA, EQB, EQC and EQE – in China.

In 2022, the German luxurious automobile maker delivered 751,700 regionally constructed and imported automobiles in China, a decline of 1 % from a 12 months earlier.

Mercedes-Benz has not disclosed its EV gross sales in China final 12 months.