BMW Group and Encory Open Direct Battery Recycling Center

BMW Group reports the launch of a new battery recycling center in Bavaria, introducing a direct recycling process to reuse battery materials and support a circular economy.

BMW Group has taken another practical step toward a circular economy in battery production with the launch of its new Cell Recycling Competence Center (CRCC) in Salching, Lower Bavaria. The facility, developed jointly with Encory GmbH, is now officially operational and marks an important milestone in BMW’s strategy to keep critical battery materials within a closed production loop.

At the heart of the new center is an innovative direct recycling process developed in-house by BMW Group experts. Unlike conventional hydrometallurgical or pyrometallurgical recycling methods, the approach relies on mechanical dismantling of residual materials from battery cell production, including complete cells. The recovered materials are not chemically reverted to their original state but are instead fed directly back into the battery cell manufacturing process, eliminating several energy-intensive processing steps.

Once fully ramped up, the CRCC is expected to process battery cell materials in the mid double-digit tonne range per year. Recovered raw materials such as lithium, cobalt, nickel, graphite, manganese and copper will be reused in pilot battery cell production at BMW’s Cell Manufacturing Competence Center (CMCC) in Parsdorf. This setup keeps development, production and recycling within a tightly connected regional network.

The Salching facility is built and operated by Encory GmbH, a joint venture between BMW Group and Interzero Group, each holding a 50 percent stake. While Encory manages operations, the intellectual property for the direct recycling process remains fully with BMW Group. The project represents an investment of around €10 million and is expected to create approximately 20 jobs. The 2,200-square-meter building is equipped with photovoltaic systems, and energy released during battery cell discharge can be used to support recycling operations.

BMW sees direct recycling not merely as a research initiative, but as a technology with potential for future series application. According to the company, the process could help reduce costs and improve the sustainability of battery cell production, particularly as European regulations increasingly require higher recycling efficiencies and minimum shares of recycled content in batteries.

With the CRCC, BMW completes a regional competence chain spanning research in Munich, pilot manufacturing in Parsdorf and recycling in Salching. Together, these sites form the backbone of the group’s battery cell strategy and underline its ambition to turn end-of-life batteries into a reliable source of raw materials for the next generation of electric vehicles.