German luxury carmaker Mercedes-Benz has opened Europe's first battery recycling plant with an integrated mechanical-hydrometallurgical process making it the first car manufacturer worldwide to close the battery recycling loop with its own in-house facility.

The recycling plant in Kuppenheim, southern Germany, creates a genuine circular economy. Unlike existing established processes, the expected recovery rate of the mechanical-hydrometallurgical recycling plant is more than 96 percent. Valuable and scarce raw materials such as lithium, nickel and cobalt can be recovered – in a way which is suitable for use in new batteries for future all-electric Mercedes-Benz vehicles. The company has invested tens of millions of euros in the construction of the new battery recycling plant and thus in the value creation in Germany. Federal Chancellor Olaf Scholz and Baden-Württemberg's Environment Minister Thekla Walker visited the plant for the opening ceremony in Kuppenheim, Baden.

Ola Kaellenius, Chairman of the Board of Management, Mercedes-Benz Group said, “Mercedes-Benz has set itself the goal of building the most desirable cars in a sustainable way. As a pioneer in automotive engineering, Europe's first integrated mechanical-hydrometallurgical battery recycling factory marks a key milestone towards enhancing raw-materials sustainability. Together with our partners from industry and science, we are sending a strong signal of innovative strength for sustainable electric mobility and value creation in Germany and Europe.”

Ola Scholz said, “The future of the automobile is electric, and batteries are an essential component of this. To produce batteries in a resource-conserving and sustainable way, recycling is also key. The circular economy is a growth engine and, at the same time, an essential building block for achieving our climate targets! I congratulate Mercedes-Benz for its courage and foresight shown by this investment in Kuppenheim. Germany remains a cutting-edge market for new and innovative technologies.”

The luxury carmaker has joined hands with Primobius, a joint venture between German plant and mechanical engineering company SMS Group and Asutralian process technology developer Neometals, which is its technology partner for the battery recycling factory.

The plant is receiving funding from the German Federal Ministry for Economic Affairs and Climate Action as part of a scientific research project with three German universities. The project looks at the entire process chain for recycling, including logistics and reintegration concepts. The partners are thus making an important contribution to future scaling of the battery recycling industry in Germany.

Integrated mechanical-hydrometallurgical

For the first time in Europe, the Mercedes-Benz battery recycling plant covers all steps from shredding battery modules to drying and processing active battery materials. The mechanical process sorts and separates plastics, copper, aluminium and iron in a complex, multi-stage process. The downstream hydrometallurgical process is dedicated to the so-called black mass. These are the active materials that make up the electrodes of the battery cells. The valuable metals cobalt, nickel and lithium are extracted individually in a multi-stage chemical process. These recyclates are of battery quality and therefore suitable for use in the production of new battery cells.

Unlike the pyrometallurgy established in Europe at present, the hydrometallurgical process is less-intensive in terms of energy consumption and material waste. Its low process temperatures of up to 80deg Celsius mean it consumes less energy. In addition, like all Mercedes-Benz production plants, the recycling plant operates in a net carbon-neutral manner. It is supplied with 100 percent green electricity. The roof area of the 6800 square-metre building is equipped with a photovoltaic system with a peak output of more than 350 kilowatts.

The Mercedes-Benz battery recycling plant in Kuppenheim has an annual capacity of 2,500 tonnes. The recovered materials feed into the production of more than 50,000 battery modules for new all-electric Mercedes-Benz models. The knowledge gained could help scale up production volumes in the medium to long term.

Holistic approach

Mercedes-Benz takes a holistic approach to the circularity of battery systems and considers three core topics: circular design, value retention and closing the material loop.

With its Design for Circularity approach, the OEM is taking the entire battery technology value chain into account from the outset. At the Mercedes-Benz eCampus in Stuttgart-Unterturkheim, which opened in 2024, circular thinking flows into the development of new battery cells. Battery production for electric Mercedes-Benz vehicles is net carbon-neutral in battery factories on three continents. Local battery production is a key factor for the success of the Mercedes-Benz sustainable business strategy.

In line with circular thinking and to conserve resources, the company offers reconditioned batteries as spare parts for all its electric vehicles. In addition, its Mercedes-Benz Energy subsidiary has established a successful business model with large-scale stationary storage applications. Batteries that are no longer suitable for vehicle use can enjoy a second life as part of an energy storage system.

Jorg Burzer, Member of the Board of Management of Mercedes-Benz Group, responsible for Production, Quality & Supply Chain Management stated “We are systematically deepening our expertise in the battery value chain. Following the opening of the Mercedes-Benz eCampus for development of new battery cell chemistries in Stuttgart-Unterturkheim, we are now sustainably closing the raw materials loop in Kuppenheim. The innovative technology enables us to recover valuable raw materials from the battery with the highest possible degree of purity. This turns today's batteries into tomorrow's sustainable mine for raw materials. The new battery recycling plant strengthens the role of the Mercedes-Benz production network with vehicle and drivetrain plants in Europe.”

Thekla Walker MdL, Minister for the Environment, Climate and Energy Baden-Wurttemberg said, “Battery recycling is of great importance to Baden-Wurttemberg as a state with such a strong automotive sector. Closing the loop on the value chain reduces dependencies, increases resilience in times of crisis and can smooth peaks and troughs in the availability of raw materials. Mercedes-Benz is a pioneer in this respect: With the integrated battery recycling plant, Mercedes-Benz has developed a sustainable approach for dealing with limited resources and is therefore making a valuable contribution to a truly circular economy. We are proud that in this federal state of innovators, we are also at the forefront in this field.”
 

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CATL and Stellantis broke ground on a EUR 4.1 billion battery plant in Figueruelas, Spain, on 26 November. The 50:50 joint venture will produce lithium-iron-phosphate battery cells and targets an annual production capacity of 50 GW/h.

The project, which is Spain’s largest battery factory, is backed by over EUR 300 million in EU funds, with production expected to start in late 2026.

According to unions, around 2,000 Chinese workers will help construct the site, a point of contention with local authorities and residents. Also, 3,000 Spanish staff are to be hired and trained later.

Spanish authorities and residents have voiced concerns about job opportunities for local workers and potential strain from the influx of foreign employees. CATL Vice President Meng Xiangfeng said earlier in November the company needed experienced technicians to build and fine-tune production lines, with plans to train local workers to take over operations gradually.

David Romeral, Director General of CAAR Aragon, a network of automotive businesses in the region, said: “We don’t know this technology, these components – we’ve never made them before. They’re years ahead of us. All we can do is watch and learn.”

The regional government is organising work permits for arriving workers while seeking to attract battery supply chain companies to Aragon. Some Chinese technicians and managers have already arrived, with several hundred more expected by year-end and nearly 2,000 by the end of next year.

CATL’s approach contrasts with its Hungarian site in Debrecen, where it hired mostly locals to build its European plant. However, a lack of local workers caused production to be delayed from late 2025 into mid-2026. The Figueruelas facility will serve as CATL’s third European manufacturing operation, alongside the Hungarian plant and one in Germany.

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Neuron Energy, an EV battery manufacturer, has raised INR 310 million in a Pre-Series B funding round led by Equanimity Ventures, Rajiv Dadlani Group, Thackersay Family Office and Chona Family Office, with participation from Family Offices and HNI investors. With this, Neuron Energy has raised INR 810 million to date.

The funding will be used to expand Neuron Energy’s manufacturing capacity to 3 GWh and to establish a fully automated, large-scale battery facility for electric four-wheelers and buses at Chakan, Pune. The capital will also strengthen the company’s R&D capabilities, accelerate domestic growth, and broaden its footprint in international markets.

Pratik Kamdar, CEO and Co-Founder, Neuron Energy, said, “This Pre-Series B round is a defining step in our mission to industrialise world-class battery manufacturing in India. As EV adoption accelerates, we are focused on building capacity, embedding automation, and pushing the boundaries of performance and reliability. This investment ensures we can deliver at scale, both in India and globally.”

The company said it operates with a low-CapEx and low-OpEx business model. It has been growing profitably year-on-year and is on track to achieve INR 2 billion in revenue this year. The company is also confident of achieving sales of over INR 9 billion, with profitability, over the next few years.

Rajesh Sehgal of Equanimity Ventures, added, "We see immense potential in Neuron Energy’s approach to EV battery innovation and scalability. Their focus on quality, automation, and energy efficiency aligns with the evolving demands of the EV industry in India and beyond. We are proud to support their next phase of growth as they scale into new vehicle categories and manufacturing capacities."

The new facility reinforces the company’s position in two-wheeler EV batteries and signals a strategic entry into heavier vehicle segments. This supports Neuron’s vision to become a comprehensive EV battery solutions provider.

Rajiv Dadlani, from the Family Office of the Rajiv Dadlani Group, said, "Neuron Energy demonstrates remarkable potential to become the market leader, with their renewed focus, in delivering top-quality products. The company and its founders are highly committed to delivering rigorously tested and safe-to-use Li-Ion smart batteries. We are confident that they will continue to thrive and set new standards in the industry."

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Mahindra has launched the XEV 9S, an electric 7-seater SUV built on the INGLO platform, with prices starting at INR 1.99 million (ex-showroom).  The XEV 9S is powered by MAIA, described as India’s fastest automotive mind.

The EV comes with a 70 kWh battery, delivering a power of 180 kW and 380 Nm of torque. It offers a claimed real-world range of 500 km from its LFP battery, which comes with a Lifetime Warranty. The SUV is stated to be the fastest 7-seater in its class, reaching zero to 100 kmph in 7.0 seconds, with a 202 kmph top speed.

The fully-loaded Pack Three Above 79 kWh variant is priced at INR 2.94 million ex-showroom with bookings open on 14 January 2026 and deliveries starting on 23 January 2026.

R Velusamy, President - Automotive Business, Mahindra & Mahindra and Managing Director, Mahindra Electric Automobile, said, “We have always believed that technology is meaningful only when it expands human possibility. The XEV 9S built on the INGLO electric origin platform does exactly that by creatin space – more than anyone else and gives a smooth and noise free ride. THE MAIA brain enables many of its high-tech features, making it the most advanced offering for its price.”

Nalinikanth Gollagunta, Chief Executive Officer - Automotive Division, Mahindra & Mahindra and Executive Director, Mahindra Electric Automobile, said, “The future of Indian mobility will belong to brands that don’t just electrify vehicles, but reimagine categories. With the XEV 9S, we’re not just playing in the EV segment, we’re expanding it. This SUV signals the start of a BIG new electric era for Mahindra - one built on scale, on purpose, and on a deep understanding of how India moves. The attractive prices starting at ₹ 19.95 Lakh make a very high-tech product accessible, with bookings opening on Jan 14 and deliveries start on Jan 23.”

The XEV 9S is an expression of Mahindra’s Heartcore Design philosophy, featuring a stance, lines, a gloss finish and interiors. The vehicle is designed to be silent on wheels.

Key highlights include:

• Space: Offers 4,076-litre of cabin space (for front and second row), boot space up to 527-litre and 150-litre of Frunk space. The third-row features 50:50 split seats.
• Suspension: Features Intelligent Adaptive dampers with i-Link at the front and 5-Link independent suspension at the rear.
• Driver Aids: Includes L2+ ADAS with five Radars and one Vision Camera, Driver Drowsiness Detection with DOMS (Eyedentity) and Secure360 Pro for live view and recording.
• Interior Comfort: Features Powered Boss Mode, ventilated second row seats, recline and sliding adjustment, sunshade for second row windows, Acoustic ‘Laminated’ Glass and wireless phone charging.
• Technology: Equipped with Brake by Wire with IEB, High Power Steering with VGR, VisionX – AR HUD, AutoPark Assist, and 140 features including Digital Key, NFC and Charge Scheduler.
• Entertainment: Includes a 16-Speaker Harman Kardon Audio system with Dolby Atmos, three 31.24 cm screens, 5G Connectivity and Fun & Work Apps.
• Efficiency: Running costs are INR 1.2 per km, with maintenance costs of INR 40 paise per kilometre and negligible road tax. Business owners benefit from 40 percent depreciation.

Pratap Bose, Chief Design & Creative Officer - Auto & Farm Sectors, Mahindra & Mahindra, said, “Designing the XEV 9S wasn’t about adding lines to a surface, it was about shaping a feeling. We wanted it to feel like stepping into a personal sanctuary, yet one that carries the pulse of modern India. Electric gave us the canvas; INGLO gave us the freedom to sculpt light, space and comfort. The result is an SUV that wears its size with grace and its technology with humility. It’s expressive, it’s calm, and it’s unmistakably Mahindra - built for a nation whose aspirations are only getting bigger.”

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