BMW Group, Encory launch innovative direct recycling of battery raw materials

BMW Group has implemented a direct, mechanical recycling process for battery cell materials at its newly commissioned Cell Recycling Competence Centre (CRCC) in Salching, Germany. The facility marks the first large-scale application of this approach within the company’s battery value chain and is operated together with Encory.




Unlike conventional battery recycling routes that rely on chemical or thermal treatment, the CRCC uses mechanical recycling. The process avoids breaking materials down into their basic chemical constituents, allowing recovered battery materials to be fed directly back into cell production. This reduces energy demand, lowers processing complexity, and conserves raw materials.

At full operation, the CRCC will process tens of tonnes of battery cell materials per year, including both manufacturing residues and complete cells from pilot production. The recovered materials are returned to the BMW Group’s Cell Manufacturing Competence Centre (CMCC) in Parsdorf, creating a closed material loop between development, pilot production, and recycling.




The Salching site completes the BMW Group’s three-location battery cell ecosystem in Bavaria: Munich focuses on cell development, Parsdorf on pilot production and scaling, and Salching on recycling and material recirculation. This geographic concentration is intended to shorten material flows, simplify logistics, and improve resource efficiency across the battery lifecycle.

Direct recycling at the CRCC is the result of extensive in-house development work and production expertise. While the facility is built and operated by Encory, the intellectual property for the recycling process remains with the BMW Group. The centre occupies approximately 2,100 square metres of production and storage space, supported by rooftop photovoltaics, and is expected to employ around 20 people.




The CRCC forms part of the BMW Group’s broader “4Re” circular economy strategy—Re:Think, Re:Duce, Re:Use and Re:Cycle—which aims to keep materials in use for as long as possible and reduce dependence on newly extracted raw materials. By reintegrating battery materials directly into production, the Salching facility demonstrates how circular battery manufacturing can be implemented in practice.

www.bmwgroup.com