BMW launches EV battery recycling in Germany

December 16, 2025

BMW Group, in collaboration with recycling specialist Encory GmbH, has officially launched a cutting-edge electric vehicle (EV) battery recycling facility in Salching, Lower Bavaria, Germany. This new site — called the Cell Recycling Competence Center (CRCC) — introduces an innovative direct recycling method designed to recover and reuse valuable battery materials more sustainably. 

What makes this recycling process unique?

Unlike traditional EV battery recycling techniques that rely on energy-intensive chemical or thermal breakdown, BMW’s direct recycling process mechanically dismantles battery cells to extract raw materials without fully reverting them to their original chemical state. This reduces energy use, cuts costs, and lowers carbon emissions compared with conventional hydrometallurgical or smelting approaches. 

The recovered materials are then fed directly back into BMW’s battery cell production cycle, supporting pilot manufacturing at the company’s Cell Manufacturing Competence Center (CMCC) in Parsdorf, near Munich. Once fully operational, the CRCC aims to recycle mid-double-digit tonnes of battery cell material annually. 

Strategic impact on circular economy and battery production

The new recycling hub represents a major step in BMW’s circular economy strategy for EV batteries. By capturing and reusing production residues on-site, the company minimizes waste and dependence on newly mined raw materials. BMW retains full intellectual property rights for the direct recycling technology, while Encory — a 50/50 joint venture with the Interzero Group — handles facility construction and operations. 

Markus Fallböhmer, Senior Vice President of Battery Production at BMW AG, says the direct recycling method “puts us at the forefront of battery sustainability” and could lay the groundwork for broader adoption in mass production. 

Facility details and regional benefits

The CRCC occupies an existing industrial building covering about 2,100 m² of production and warehouse space, plus around 350 m² of offices. Solar panels on the roof contribute renewable energy to operations. Roughly 20 people will work at the center, and most construction and operational partners are based within 100 km of the site, supporting local industry. 

By integrating recycling directly into the battery value chain, BMW and Encory aim to reduce environmental impact, unlock material efficiencies, and strengthen Europe’s sustainable EV manufacturing ecosystem.