Italian truck and bus maker Iveco Group (IVG.MI), opens new tab has partnered with German chemicals group BASF (BASFn.DE), opens new tab for the recycling of lithium-ion batteries of its electric vehicles (BEVs), the two companies said on Tuesday.

The agreement, for which no financial details were provided, is part of Iveco's circular economy strategy, aiming to increase batteries' lifetime and reduce their overall environmental impact, the two companies said in a statement.

It also complies with the so-called Extended Producer Responsibility policy approach, which extends the manufacturers' responsibility to the entire life cycle of the products they introduce on the market, including management of the post-consumer stage and end-of-life.

BASF, one the main suppliers of chemicals for automotive batteries, has recently inaugurated a hub for battery material production and battery recycling in Schwarzheide, Germany.

Based on the deal with Iveco, BASF will arrange there the whole recycling process for the lithium-ion batteries used by the Italian group on its BEV vans, buses and trucks, including their collection, packaging, transport, and recycling in a number of European countries.

BASF will mechanically process the batteries into the "black mass", from which raw materials such as nickel, cobalt and lithium can be extracted and reused. It will then supply recycled metals to Europe's local battery industry.

BASF's "broad battery collection network and recycling capabilities in Europe will help us close the loop from end-of-life batteries to new ones," Iveco's Chief Supply Chain Officer Angela Qu said in the statement.