The BMW Group, in partnership with Encory, has commissioned an innovative Cell Recycling Competence Centre (CRCC) in Salching, Bavaria, using a mechanical process to directly recycle battery materials and keep them in a closed production loop. This method avoids energy-intensive treatments and marks a significant step in the automaker’s 4Re circular economy strategy, aiming to recover tens of tonnes of cell materials annually and feed them directly back into production.
Nestled in Lower Bavaria, the new BMW Group Cell Recycling Competence Centre (CRCC) might not build the sleek vehicles the brand is famous for, but what happens inside could be just as crucial for the future of electric mobility. Here, the company, alongside joint venture partner Encory, is reinventing battery recycling. Forget the conventional, energy-heavy chemical processes. The focus is on a smarter, mechanical method that keeps valuable materials intact and ready for a second life, right from the start.
“Our direct recycling process puts us at the forefront of the industry and has tremendous potential to further optimise battery cell production,” stated Markus Fallböhmer, Head of Battery Production at BMW AG. This isn’t just about end-of-life vehicle batteries; it’s a holistic system. The facility processes production residues and even entire cells from pilot runs, ensuring that waste from the very beginning of the manufacturing journey is designed out of existence.
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So, how does this “direct recycling” work, and why is it a big deal? In simple terms, conventional recycling often involves breaking materials down to their molecular basics—a process requiring significant heat or chemicals. The mechanical approach developed by the BMW Group is more surgical. It carefully separates and prepares key battery components so they can be fed directly back into the production of new battery cells, sidestepping those energy-intensive steps. The result is a dramatic saving in resources, energy, and cost.
This new centre is the crucial third node in the automaker’s concentrated battery cell expertise network in Bavaria, creating a true regional loop. According to the company’s strategy, cells are developed in Munich at the Battery Cell Competence Centre (BCCC), scaled for pilot production in Parsdorf at the Cell Manufacturing Competence Centre (CMCC), and now, their materials are given a new beginning at the CRCC in Salching. What’s developed in Munich grows in Parsdorf and returns via Salching, all within a tight radius.
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The CRCC itself is a model of the circular thinking it enables. Housed in a repurposed hall, its 2,100 square metres of production space are partly powered by rooftop photovoltaics. While operated by Encory—a 50/50 joint venture between the BMW Group and the Interzero Group—the intellectual property for the pioneering recycling method stays with BMW. In a commitment to regional strength, nearly half the companies involved in building the centre were located within 100 kilometres of Salching.
This initiative is a core component of the BMW Group’s broader 4Re circular economy strategy—Re:Think, Re:Duce, Re:Use, and Re:Cycle. The goal is unambiguous: to close material loops completely. By keeping battery raw materials like cobalt, nickel, and lithium in a continuous cycle, the company reduces its reliance on newly mined resources and the environmental footprint that comes with them. It’s a practical blueprint for how the industry can move from a linear “take-make-dispose” model to a circular one, where today’s battery waste becomes tomorrow’s building block.
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