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Mercedes opens a plant to recycle batteries for electric cars.

Mercedes-Benz’sCEOhailed the opening of the company’s electric vehicle battery recycling facility in Germany on Monday as a “significant milestone” that would increase the sustainability of the industry.

About 50,000 batteries for the company’s electric models will be produced annually by the 2,500 tonnes of material that the plant, located in the southwest town of Kuppenheim, is capable of recycling. Ola Kallenius, CEO of Mercedes, stated that the plant “marks a key milestone towards enhancing raw-materials sustainability.”

Recycling is “key” when it comes to EV batteries, according to Chancellor Olaf Scholz, who was present at the plant opening. He stated, “The circular economy is both a growth engine and a crucial building block for achieving our climate targets.”

The EU has a deadline of 2035 to phase out the sale of cars that burn fossil fuels, so the production and recycling of electric car batteries is becoming more and more important in the bloc.

In addition to lowering the waste produced by EVs, recycling is thought to be crucial for enhancing European sovereignty in the battery industry because materials like cobalt, nickel, and lithium are mostly imported. Tens of millions of euros were invested by Mercedes in the new facility.

New battery cells will be made using the individual critical metals that are extracted using a chemical process.

Mercedes claims that compared to other plants in Europe, the process at this one uses less energy and produces less waste.

The factory’s opening is a rare bit of good news for Europe’s EV battery industry, which has been hurt by the decline in sales of electric vehicles across the continent.