The new Cell Recycling Competence Center (CRCC) in Salching, Lower Bavaria, has been officially commissioned, marking a significant step in implementing innovative direct recycling as a joint project between the BMW Group and Encory GmbH. For the construction and operation of the Competence Center, both companies are relying on regional partners.
Innovative direct recycling enables reuse of battery raw materials
Direct recycling allows residual materials from battery cell production, including complete battery cells, to be mechanically dismantled. Unlike conventional methods, the raw materials are not fully reverted to their original state but are instead directly fed back into the cell production cycle. Developed by BMW Group experts, this process eliminates the energy-intensive chemical or thermal processing previously required. At the new CRCC, direct recycling will be scaled up and introduced in stages, with the annual volume of recycled battery cell material expected to reach the mid-double-digit tonne range once fully operational. The recovered raw materials will then be reused in pilot production at BMW’s Cell Manufacturing Competence Center (CMCC) in Parsdorf.
Direct recycling: A process for the future
“Our direct recycling process puts us at the forefront of the industry,” said Markus Fallböhmer, SVP of Battery Production at BMW AG. “This technology has tremendous potential to further optimise battery cell production.” He added that it is conceivable for the first time that cell manufacturers could use direct recycling in series production.
Joint venture runs Competence Center – IP remains with BMW Group
The CRCC is located in an existing hall in Salching, covering around 2,100 m² of production and warehouse space, with nearly 350 m² for offices and break rooms, including rooftop photovoltaic systems. While Encory GmbH, a joint venture between BMW Group and Interzero Group, will build and operate the Competence Center, the intellectual property for the recycling method is fully owned by BMW Group. Encory will also develop logistics and consulting solutions for recovery, recycling, and reconditioning of vehicle components. The CRCC will employ approximately 20 people, with nearly half of the contracted companies located within 100 kilometers of Salching.
Optimal location and integration with BMW Competence Centers
BMW Group consolidates its battery cell expertise across its Competence Centers in Munich, Parsdorf, and Salching. The Battery Cell Competence Center (BCCC) in Munich develops next-generation high-voltage battery cells, which are scaled up at the CMCC in Parsdorf. Surplus materials from Parsdorf will now be recycled at the CRCC in Salching, ensuring short distances between centers and preventing loss of valuable raw materials.
Circular economy at BMW Group
The BMW Group emphasizes a circular economy as key to resource-efficient mobility, applying principles of Re:Think, Re:Duce, Re:Use, and Re:Cycle. From vehicle design to recycling, the company ensures materials retain value for long-term use, with recycled production residues already being reintroduced into new BMW vehicles today.





