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BMW Group and Encory Launch Direct Battery Recycling Center in Bavaria, Cutting Energy Use

Image credit: BMW
Image credit: BMW

The BMW Group and joint venture partner Encory GmbH have officially launched their innovative Cell Recycling Competence Center (CRCC) in Salching, Bavaria, pioneering a “direct recycling” method that recovers raw materials from battery production without energy-intensive processing. The facility aims to recycle a mid-double-digit tonne range of material annually for direct reuse in new pilot battery cells.

The race for sustainable electric vehicles isn’t just about what powers them on the road, but what happens to the batteries when they’re built and eventually retired. A new facility in Lower Bavaria is tackling the first part of that equation with a groundbreaking approach. The newly commissioned Cell Recycling Competence Center (CRCC) represents a major leap in circular economy thinking for the auto industry.

At its core is an innovative direct recycling process developed by BMW Group experts. Unlike conventional recycling that uses smelting or chemical baths to break materials down to their base elements, this method is more surgical. It mechanically dismantles residual materials from battery cell production—including complete but off-spec cells—and prepares the key raw materials to be fed directly back into the manufacturing loop.

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“This technology has tremendous potential to further optimise battery cell production,” stated Markus Fallböhmer, Senior Vice President of Battery Production at BMW AG. He emphasized that the process positions BMW at the industry’s forefront and could even enable cell manufacturers to use direct recycling in series production for the first time.

The operational heart lies with Encory GmbH, a 50/50 joint venture between the BMW Group and the Interzero Group. While Encory builds and runs the 2,100 m² production and warehouse facility, the intellectual property for the recycling methodology remains fully with BMW. The location is strategic, creating a tight battery expertise corridor in Bavaria. Materials from the pilot production line at the Cell Manufacturing Competence Center (CMCC) in Parsdorf will be recycled at the CRCC in Salching, and the recovered materials will then be sent back to Parsdorf, minimizing transport and preserving value.

The environmental upside is significant. By skipping the traditional, energy-heavy processing steps, direct recycling drastically reduces the carbon footprint of battery material recovery. Once fully scaled, the CRCC is designed to handle an annual volume in the mid-double-digit tonne range. This isn’t just a lab experiment; it’s a concrete step toward industrial-scale circularity. The project also emphasizes regional collaboration, with nearly half of the contracted German firms for construction and operation located within a 100-kilometer radius of Salching.

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This center is a critical pillar in BMW’s broader “Re:Cycle” strategy, which aims to keep materials in a continuous loop. The company views the circular economy as essential for resource-efficient mobility, focusing on design, reduction, reuse, and recycling to ensure vehicles become a future source of raw materials. The CRCC ensures that valuable cobalt, lithium, and nickel from production scraps don’t go to waste but get a second life immediately, bringing the vision of a closed-loop battery ecosystem one major step closer to reality.

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