BMW has opened a new facility dedicated to recycling battery cells as part of its broader commitment to circular economy practices. The Cell Recycling Competence Center (CRCC) in Salching, Bavaria, will apply a direct recycling process to recover valuable materials from battery cells and feed them back into production. This represents a tangible step toward more sustainable battery value chains and reduced resource loss in electric vehicle manufacturing.
New facility begins operations
On 15 December 2025, BMW Group and its partner Encory GmbH officially commissioned the CRCC in Salching, in the Straubing-Bogen district of Lower Bavaria. The centre forms part of a cluster of related facilities that together support battery development, manufacturing and recycling in the region. The Munich-based Battery Cell Competence Center (BCCC) develops new cell designs, while the Cell Manufacturing Competence Center (CMCC) in Parsdorf scales those designs for pilot production. The CRCC closes the loop by recycling surplus material from Parsdorf and returning it to the production cycle.
The direct recycling process is different from traditional approaches. Instead of breaking battery cells down chemically or thermally, the technique mechanically dismantles them and preserves the structure of key components. This method avoids the energy-intensive stages of typical recycling and reduces environmental impact. It also means that recovered materials such as cathode powders and metals can be used directly in pilot production lines without extensive reprocessing.
How direct recycling fits into a circular model
Circular economy principles focus on keeping materials in use for as long as possible and reducing waste. Battery cells contain critical raw materials such as nickel, cobalt and lithium, which are costly to extract and face supply constraints. By reusing these materials through a closed loop, companies can reduce dependence on mining and lower carbon emissions across the supply chain. BMW has stated that direct recycling could enable manufacturers to use recycled content in new battery cells, further closing the material loop.
BMW’s approach builds on earlier circular economy initiatives. In previous partnerships, the company has worked with recyclers to recover black mass from end-of-life batteries and reintroduce it into material supply chains. These efforts have shown that reclaiming metals can help reduce the environmental footprint of electric vehicles and align production with resource efficiency goals.
Industry implications and future prospects
The establishment of the CRCC highlights a growing trend in the automotive sector toward battery recycling and circular resource use. By retaining intellectual property and partnering with regional firms, BMW aims to create a more resilient and localized recycling ecosystem. The facility is expected to handle mid-double-digit tonne volumes annually once fully operational, reinforcing the company’s capacity to manage its own recycled inputs.
As global demand for electric vehicles continues to rise, the ability to recycle and reuse battery materials efficiently will become increasingly important. BMW’s direct recycling centre in Salching may serve as a model for how automakers can integrate circular economy principles into core production and reduce pressure on global raw material supplies.
