According to Reuters, the battery plant will be located in the town of Kuppenheim and it will be built in two stages.

First, the company will build the mechanical disassembly facility, which will be completed by 2023 and it will be followed by the hydrometallurgical processing of the battery.

The facility is expected to process around 2.500 tons of batteries per year and the recovered materials will be used to produce 50.000 battery modules for Mercedes-Benz electric vehicles.

Joerg Burzer, Mercedes-Benz board member said that "with our new recycling plant at the Kuppenheim location, we are increasing the recycling rate to more than 96% while expanding our own expertise in the area of battery value creation."

With this strategy, the German vehicle manufacturer hopes to close the recycling loop for the EV industry, saving on rare materials and helping the environment.

"Through targeted collaborative ventures with high-tech partners in China and the U.S., we are globalising our battery recycling strategy and taking a decisive step toward closing the recycling loop in e-mobility", added Joerg Burzer.