Mercedes-Benz announced today a new agreement with metals recycling company TSR Recycling GmbHto launch a new “urban recycling” pilot program aimed at substantially advancing the automaker’s circularity strategy by enabling the company to increase the use of secondary materials in its vehicle fleet.

According to Mercedes-Benz, the new partnership will support the company’s Ambition 2039 strategy, which includes a goal to make its fleet of new passenger cars net carbon neutral over the entire vehicle lifecycle by 2039. As part of its strategy, Mercedes-Benz has set a goal to increase the share of recycled materials in its new vehicle fleet to an average of 40%.

Under the new partnership, Mercedes-Benz and TSR plan to analyze the demand for, and source of, secondary materials through urban mining, or the extraction of valuable materials from waste, and to conduct a commercial evaluation, with a focus on steel, aluminum, polymers, copper, and glass.

They companies will also develop activities to provide access to material flows that would otherwise be exported to other sectors and countries. According to Mercedes-Benz, the goal is to avoid ‘downcycling’, whereby recycled materials are subject to a loss of quality.

Markus Schäfer, Member of the Board of Management of Mercedes-Benz Group AG, Chief Technology Officer, Development & Procurement said:

“Together with our partners, we are working to increase the share of secondary raw materials in our vehicles and further improve process efficiency. We see great potential in urban mining as a cost-effective way to conserve valuable resources through the circular economy.”