Closing the loop.

Mercedes-Benz is consistently creating the conditions for a net carbon-neutral^[1]Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
new vehicle fleet in 2039 throughout its entire life cycle. The electrification of our fleet is one of the most important levers for this. We assume that the worldwide share of electric cars and plug-in hybrids in our new vehicle sales will reach up to 50 percent in the second half of this decade. The heart of this is the battery. Lithium-ion batteries contain valuable raw materials such as lithium, manganese, nickel and cobalt. Establishing a circular economy to conserve primary resources therefore plays a central role in battery systems.

We are thinking about the circular economy right from the start in product development. This also applies to battery technology. During the development of a vehicle, we create a concept for each model in which all components and materials are analysed for their suitability as part of a circular economy. It is checked to what extent the components and materials are suitable for the various stages of the recycling process, including the material recycling of the battery raw materials used. As part of the analysis, the entire value chain is considered - from the mine to recycling. For the Mercedes-Benz Group, as a fundamental part of responsible corporate governance, this includes respect for human rights in the working conditions of employees at our suppliers. With the Human Rights Respect System (HRRS), the Group has developed an approach for implementing human rights due diligence to meet its aspirations. In addition, our Responsible Sourcing Standards  specify the minimum requirements and expectations we have towards our suppliers.

The opening of the Mercedes-Benz eCampus in July 2024 marks an important step in our sustainable business strategy. It is the competence centre for the development of cells and batteries for the future electric vehicles of the brand with the star. The activities of the eCampus form the starting point of the circular concept of Mercedes-Benz. With the "Design for Circularity" approach, the company views the entire value chain of battery technology from the start. From the development of new cell chemistry and the testing of battery cells to their production in small quantities for development, the company designs battery cells with Mercedes-Benz DNA. The findings flow into series production of the battery cells at partner companies.

Mercedes-Benz develops different forms of cell chemistry. Among other things, the company is working on lithium-ion cells with high-energy anodes based on silicon composites and innovative cobalt-free cathode chemistry as well as on solid battery technology. The aim is to develop the best possible cells with "Mercedes-Benz DNA" for a high energy density, rapid charging capacity and performance as well as to build up the know-how for their industrialisation.

The transformation to electromobility is our way of achieving the demanding carbon emission reduction targets throughout the entire life cycle. In this context, however, the energy requirement in the upstream supply chain increases. That is why our suppliers also play an important role within our holistic approach. Together with our partners in the supply chain, we want to implement effective climate protection measures. The goal: prevent, minimise or, as far as possible, end potential environmental impacts along the supply chain. Creating transparency is our starting point. In addition, we work with our partners to develop new sources of raw materials.

The batteries for the electric Mercedes-Benz vehicles are produced in battery factories on three continents. Local battery production is a key success factor for the sustainable business strategy of Mercedes-Benz. Since 2022, Mercedes-Benz's own vehicle and powertrain production locations have been net carbon-neutral.^[1]Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
By 2030, we aim to cover more than 70 percent of the energy demand in production with renewable energies. This is to be achieved through the expansion of solar and wind energy at our own locations and through the conclusion of further corresponding power purchase agreements. The ambition is to use 100 percent renewable energy by 2039.

A large part of the carbon footprint of a battery-electric vehicle arises due to carbon containing charging processes. With Mercedes me Charge, we enable our customers to charge with green electricity^[2]Green Charging uses Energy Attribute Certificates to ensure that an equivalent amount of electricity from renewable energy sources is fed into the power grid for charging processes in Mercedes me Charge, if no electricity from renewable energy sources is provided. For this purpose, high-quality green electricity certificates are used, which verifiably certify the origin of the energy and serve as a kind of birth certificate for electricity from renewable energies.
at public charging stations in Europe, the US and Canada. Mercedes me Charge is integrated into one of the world's largest and steadily growing charging networks with more than 1.5 million charging points - around 500,000 in Europe alone. By the end of the decade, Mercedes-Benz will also build its own global high-power charging network in North America, Europe, China and other core markets with around 2,000 locations and over 10,000 charging points.

In line with our sustainable business strategy and the associated Ambition 2039, we will also offer our customers green charging^[2]Green Charging uses Energy Attribute Certificates to ensure that an equivalent amount of electricity from renewable energy sources is fed into the power grid for charging processes in Mercedes me Charge, if no electricity from renewable energy sources is provided. For this purpose, high-quality green electricity certificates are used, which verifiably certify the origin of the energy and serve as a kind of birth certificate for electricity from renewable energies.
here. Preferably via green electricity supply contracts wherever possible or by using renewable energy certificates from accredited providers.

To promote the idea of a closed economic cycle and to conserve resources, we strive for reuse in the vehicle or repurpose of the battery before recycling. This allows raw materials and energy to be saved while reducing the amount of waste.

In our Mercedes-Benz Factory 56, for example, such a stationary power storage unit with a capacity of 1,400 kWh is in use. It stores solar power and releases it at night or on less sunny days.

In 2024, together with our partners GETEC ENERGIE and The Mobility House, we extended the service life of our energy storage units in Lünen and Elverlingsen, which have been in operation since 2016 and 2018, by another five years for primary control performance.

In a new project, Mercedes-Benz Energy supports the initiative of the Italian energy company Enel X to optimise the energy efficiency of Fiumicino airport in Rome through the use of reused vehicle batteries and thus reduce CO₂ emissions. It is planned to install Mercedes-Benz energy storage units with a total capacity of more than 5 MWh.

Material recycling is at the end of a battery's life. It forms the key for closing the recyclable material loop and is only used when the battery can no longer be reused or further utilised. In doing so, we are already able to fulfil far more than the recycling rates for drive batteries stipulated by the Battery Act. Battery housing, cables and busbars can be easily recycled. Battery modules in which most of the rare materials are installed are slightly more challenging. The goal is to further increase the recycling rates. The idea behind it: We use today's old batteries as a mine for the batteries of tomorrow.

The Mercedes-Benz battery recycling factory at our Kuppenheim site will cover all steps in battery quality from crushing and drying up to the processing of material flows. The planned process design of hydrometallurgy with recovery rates of more than 96 percent makes a real circular economy of battery materials possible. The integration of this innovative process into the overall concept of a recycling factory is currently unique in Europe. In China and the US, we work together with partners on battery recycling.

Mercedes-Benz is actively involved in the research and development of new recycling technologies and their establishment on the market. In addition, we participate in development and research projects and continue to drive forward the development of innovative technologies for the ecological and economic recycling of valuable raw materials.