BASF’s Chemical Recycling Strategy 2025: From Pilots to Profit in the Circular Economy

Industry Adoption: How BASF is Scaling Chemical Recycling Across Global Value Chains

Between 2021 and 2024, BASF laid the strategic and technological groundwork for its chemical recycling ambitions. The company established a dedicated Circular Economy Program, setting a bold initial target to double circular economy sales to €17 billion by 2030 and process 250,000 metric tons of recycled feedstock annually from 2025. The core of this strategy was the ChemCycling® technology, which uses pyrolysis to convert mixed plastic waste into a secondary raw material. This period was defined by validation and early-stage commercialization. Key activities included a collaborative study with Mitsui Chemicals in Japan, a crucial pyrolysis oil purchase agreement with ARCUS in Germany, and an MOU with Quantafuel and Remondis. These efforts proved the viability of the mass balance approach, certified by ISCC PLUS, allowing BASF to launch over 200 Ccycled® products. The launch of ChemCycling® at its Port Arthur, Texas, site in February 2024 marked a pivotal inflection point, signaling the transition from a Europe-centric pilot phase to a global commercial strategy.

Since the beginning of 2025, BASF’s strategy has visibly shifted from validation to aggressive commercial scaling and technological diversification. This is underscored by a recalibration of its financial goal to a more focused target of €10 billion in circular economy sales by 2030, supported by a €2.1 billion R&D investment where nearly half of its patent applications focus on sustainability. The company is actively building out a global feedstock supply chain through long-term offtake agreements with advanced recycling firms like Sustane Technologies in Canada and Braven Environmental in the U.S. Simultaneously, BASF is expanding the application of its technology beyond basic plastics. The development of Loopamid® for textile-to-textile recycling with partners like Inditex, and two new recycling routes for polyamides from end-of-life vehicles (ELVs) with partners like Porsche, demonstrate a sophisticated, market-driven approach. Collaborations with IFF for personal care products and Essity for diaper waste recycling showcase a broadening of target waste streams, creating new opportunities to embed recycled content into a wider range of consumer and industrial goods. This shift indicates that chemical recycling is moving from a niche solution to a core component of industrial supply chains.

Table: BASF’s Strategic Investments in Chemical Recycling and Circularity

Table: BASF’s Key Partnerships for a Chemical Recycling Ecosystem

Geography of BASF’s Chemical Recycling Expansion

Between 2021 and 2024, BASF’s chemical recycling activities were predominantly centered in Europe. Germany served as the nerve center, home to foundational partnerships with ARCUS for pyrolysis oil and NEVEON for mattress recycling. This European focus allowed BASF to refine its technology and business models within a single regulatory environment. However, the period also saw strategic seeds planted abroad. A joint venture with Heraeus in Pinghu, China, for precious metal recycling and a collaborative study with Mitsui in Japan signaled early ambitions in Asia. The most significant geographic move was the February 2024 launch of ChemCycling® at the Port Arthur, Texas Verbund site. This event marked the official and critical entry into the North American market, transforming the strategy from a regional pilot into a global initiative.

From 2025 onwards, BASF’s geographic strategy has rapidly evolved into a multi-regional hub-and-spoke model. The North American beachhead has been fortified with long-term offtake agreements with U.S.-based Braven Environmental and Canada-based Sustane Technologies, creating a robust feedstock supply chain independent of Europe. Activity in Asia is also maturing from studies to commercial action, evidenced by collaborations in China with partners like San Fang to develop circular footwear materials. Europe remains a primary hub for high-end technological innovation, hosting pilot projects for ELV recycling with Porsche and textile recycling advancements like Loopamid®. This geographical diversification de-risks BASF’s strategy, secures diverse feedstock sources, and positions the company to serve regional market demands for circular products, turning a centralized European project into a distributed, global commercial operation.

Technology Maturity in BASF’s Chemical Recycling Journey

The 2021-2024 period was characterized by technology validation and early-stage commercial piloting. The central focus was proving that ChemCycling®—using pyrolysis and a mass balance approach—could work at an industrial scale. Success was measured by achieving ISCC PLUS certification, launching the first Ccycled® products like pharmaceutical boxes with eutecma, and securing the first major feedstock agreement with ARCUS. The technology was largely monolithic: pyrolysis for mixed plastics. The primary challenge was demonstrating technical feasibility and creating a certifiable chain of custody. The launch of ChemCycling® in the U.S. at the end of this period was the capstone achievement, confirming that the core technology was mature enough for geographic expansion and ready to move beyond the pilot phase.

Since the start of 2025, the focus has pivoted decisively to technology diversification and commercial scaling. The technology is no longer a single solution but a portfolio of specialized processes tailored to high-value waste streams. This is a clear signal of increasing maturity. For instance, BASF has unveiled Loopamid®, a “fiber-to-fiber” chemical recycling process specifically for polyamide 6 textiles, demonstrated through a commercial product with Inditex. For automotive waste, it is piloting two distinct technologies for polyamides: depolymerization and a solvent-based process. These advancements show a move from a general “catch-all” approach for mixed plastics to highly specialized, efficient routes for specific polymers. The signing of multiple long-term offtake agreements with Sustane and Braven indicates the technology has moved from pilot-scale supply to securing the large-volume, continuous feedstock required for scaled commercial production. The market is now seeing the technology being applied to a broad range of consumer goods, from footwear to personal care, a clear validation of its commercial readiness.

Table: SWOT Analysis of BASF’s Chemical Recycling Strategy

Forward-Looking Insights and Summary

The data from 2025 signals that BASF’s chemical recycling strategy is entering a critical execution phase. The year ahead will be less about proving technological concepts and more about demonstrating commercial scalability and profitability. The key signal to watch is the transition from securing feedstock supply to generating consistent end-market demand. While offtake agreements with Sustane and Braven are crucial, the success of collaborations with brands like IFF, Porsche, and Essity will determine the long-term viability of the €10 billion revenue target. Market actors should pay close attention to announcements regarding the commercial-scale deployment of the specialized technologies—Loopamid® for textiles and the new polyamide recycling processes for ELVs. These are no longer just R&D projects; they are a litmus test for BASF’s ability to create high-margin circular products.

Looking forward, expect BASF to focus on solidifying its regional hubs, potentially through new partnerships or investments in Asia to complete its global triad with Europe and North America. The venture investment in ACT-ion, while adjacent to chemical recycling, suggests a strategic interest in applying circularity principles to the broader energy transition, including battery materials and energy storage. The most significant indicator of traction will be BASF’s progress reports against its 2030 sales goal. Any acceleration or lag in this metric will provide the clearest signal of whether its comprehensive and technologically diverse strategy is successfully converting sustainability commitments into financial performance.

Frequently Asked Questions

What are BASF’s main chemical recycling technologies?
BASF’s core technology is ChemCycling®, which uses pyrolysis to convert mixed plastic waste into a secondary raw material. The company is also diversifying its portfolio with more specialized processes, including Loopamid® for textile-to-textile recycling of polyamide 6, and two new recycling methods for polyamides from end-of-life vehicles.

How has BASF’s strategy for chemical recycling changed since the start of 2025?
Since 2025, BASF’s strategy has shifted from a Europe-centric validation phase to aggressive global commercial scaling. This is marked by a focus on building a global feedstock supply chain with partners in North America (Sustane, Braven), diversifying recycling technologies for specific waste streams (textiles, automotive plastics), and expanding into new end-markets with partners like Inditex, Porsche, and Essity.

What are BASF’s financial goals for its circular economy program?
As of 2025, BASF has set a target to achieve €10 billion in sales revenue by 2030 from products contributing to the circular economy. This is a revision of a previous goal of €17 billion. The new target is supported by a €2.1 billion R&D investment in 2025, with a significant focus on sustainability and circular economy patents.

Who are some of BASF’s key partners and what roles do they play?
BASF collaborates across the value chain. For securing raw material (feedstock), it has offtake agreements with advanced recycling firms like Sustane Technologies (Canada), Braven Environmental (U.S.), and ARCUS (Germany). To create demand and applications for its recycled materials (Ccycled® products), it partners with major brands like Inditex (Zara) for textiles, Porsche for automotive parts, and Siemens for electrical products.

What are the main weaknesses or challenges identified in BASF’s strategy?
The SWOT analysis highlights that BASF revised its ambitious circular sales target downward from €17 billion to €10 billion, suggesting potential scaling challenges. The strategy also has a high dependency on external partners for feedstock, and it faces growing market competition for high-quality recycled materials. Furthermore, evolving regulations around chemical recycling and Extended Producer Responsibility (EPR) laws pose an ongoing threat.