"When developing products, the Mercedes-Benz Group keeps the circular economy in mind from the very start," says Markus Schäfer Member of the Board of Management of Mercedes‑Benz Group AG, Chief Technology Officer.

Schäfer is responsible for Development and Procurement at Mercedes-Benz and, according to him, the company's future hinges on being able to reuse and recycle materials. 

"On our journey to an all-electric future, we are rethinking the composition of all the materials in our vehicles. Every action counts when it comes to conserving resources," he explains.

"Through close collaboration with our supplier network, we are replacing raw fossil resources with pyrolysis oil made in part from recycled scrap tyres supplied by Mercedes-Benz."

However, Schäfer isn't simply regurgitating a marketing spiel. Mercedes plans to have cars on the road with components featuring the tech later this year. Auto Futures spoke with Schäfer to learn a bit more about the company's approach to circularity and the models due to hit the road.

"Mercedes-Benz is pursuing a target of CO2 neutrality throughout the entire value chain in its new passenger car fleet by 2039," explains Schäfer.

"Closing material cycles and using renewable raw materials are key levers for the responsible use of resources and reducing carbon emissions."

For the German automaker, reusing materials is absolutely key to achieving its sustainability targets. These targets cover every aspect of Mercedes' operations, from manufacturing to material sourcing, and powering of production sites. 

"We are taking a holistic approach to sustainability, both in terms of the CO₂ emissions and the consumption of natural resources," says Schäfer.

"We are working intensively on closing material cycles, significantly increasing the proportion of recycled materials in our vehicles, and researching new materials that are in harmony with nature."

That holistic approach has two main facets.

"On the one hand, our vehicles have to be prepared for a high-quality recycling for the time when they become an end-of-life vehicle," he explains.

"Therefore, we develop a recycling concept for each new vehicle model. This process includes analysing all the components and materials to find out how suitable they are for the various stages of the recycling process. As a result, all Mercedes-Benz car models are 85% recyclable and 95% recoverable in accordance with ISO 22628 and the European End-of-Life Vehicles Directive 2000/53/EC. 

"On the other hand, in order to actively close the material cycles, we also have to ensure that the proportion of recycled materials, which we use in our new vehicles is steadily increasing. Therefore, Mercedes is planning to use 40% recycled materials in its new vehicles by 2030. 

"Both aspects – push and pull - are necessary to support the idea of a modern circular economy."

Batteries are the single most important element of any electric vehicle – regardless of whether that vehicle is a car, a boat, a motorbike, or an aeroplane.  

Most batteries in electric vehicles rely on lithium or nickel manganese and cobalt to help store and move power around. However, these minerals are in desperately short supply around the world. This makes recycling these minerals absolutely essential to reduce emissions and increase circularity. 

"Sustainable battery recycling is a key factor," says Schäfer.

"A circular battery economy helps us address the challenges arising from resource scarcity, sourcing dependencies, costs, and responsible sourcing in our supply chain.  

"With its new battery recycling plant in Kuppenheim, Germany, Mercedes-Benz is increasing the recycling rate to more than 96%. Mercedes-Benz is investing a double-digit million euro amount in research and development, as well as in the construction of the CO2-neutral pilot plant at the Mercedes-Benz location in Kuppenheim in southern Germany, which is scheduled to start in 2023."

However, it's important to note that Mercedes – in spite of its size and high-tech operations – is not operating alone in its efforts to achieve circularity.

"Through targeted collaborative ventures with high-tech partners in China and the U.S., we are globalizing our battery recycling strategy and taking a decisive step toward closing the recycling loop in electric mobility," says Schäfer.

"The contribution of every partner within the circle of production, usage and recycling is required in order to close material cycles, for example by adapting processes and introducing specific knowledge.  

"Together with our suppliers as well as new technology partners, we are driving innovative technologies and new manufacturing processes that enable us to close the loop by recycling and processing materials in a resource-efficient way. This helps us to make sure recycled materials are available on the markets."

One of those partners is BASF. The company has developed a chemical recycling process to extract plastics from old tyres. 

Oil is generated from used tyres through pyrolysis, essentially heating organic materials at very high temperatures in an oxygen-less chamber, which then separates the bio-polymers allowing them to be reused. BASF combines the oil with biomethane from agricultural waste to create a "virgin-quality" plastic. 

Mercedes has always been a high-end car maker. However, while consumers of the past might have favoured opulence and extravagance in their cars, today's well-heeled drivers like to know that their consumption isn't hurting the planet. 

Mercedes' EQE and S-Class saloon models will be the first series production models to be equipped with bow door handles made using a combination of biomethane and pyrolysis oil made from scrap tyres, instead of raw fossil resources, for example. 

The S-Class, which has long been the pinnacle of Mercedes' series production vehicles, will also come with a crash absorber based on the same combination of raw materials. The company says that, as time moves on, it will "progressively increase" the use of remanufactured plastics.  What's more, Mercedes says it is also looking into chemical recycling in combination with the biomass balance approach for further plastic vehicle parts.

"The Mercedes-Benz Group is not only a company but part of society in an age of responsible, conscious luxury with ever-increasing consumer demand for luxury brands that make a positive difference," says Schäfer.

"In general, we are registering a positive development in terms of demands for sustainable materials."

Mercedes says that it is aiming to increase the proportion of recycled materials in its car fleet to an average of 40% by the end of this decade. That,