BMW building $10M battery recycling facility in Bavaria

The BMW Group and its joint venture Encory are building a Cell Recycling Competence Centre (CRCC) for battery cells in Kirchroth, in the Straubing-Bogen district of Lower Bavaria, where it will implement a process referred to as “direct recycling”. 

This innovative procedure enables residual materials from battery cell production, as well as whole battery cells, to be mechanically dismantled into their valuable components. The recovered raw materials are then directly reused in pilot production of battery cells at the company’s own Battery , Cell Competence Centres, according to a press release.

“The new Cell Recycling Competence Centre brings another element to our in-house expertise: From development and pilot production to recycling, we are creating a closed loop for battery cells,” says Markus Fallböhmer, SVP Battery Production at BMW AG, “taking advantage of the short distances between our Competence Centres in Bavaria.” 

The BMW Group is investing around 10 million euros in construction of the new Competence Centre. Installation work at the building is already scheduled to begin in the second half of 2025. Once completed, validation of the recycling method in near-series processes will get underway.

Battery cell raw materials – primarily lithium and cobalt, but also graphite, manganese, nickel and copper – are among the main cost factors in cell production. Responsible use of these resources is essential from both environmental and economic perspectives. “The direct recycling will help reducing the costs for our battery cell pilot line,” said Fallböhmer. 

Unlike conventional methods, the main characteristic of direct recycling is that raw materials from battery cells are not reverted to their original state, but are instead fed back “directly” into the cell production cycle. This method dispenses with the previously common energy-intensive chemical or thermal processing. The recycling method was developed by BMW Group experts at the Competence Centres in Munich and Parsdorf. 

At the new CRCC, it will be implemented on a larger scale and, once the processes are finalised, battery cell material in the mid-double-digit tonne range can be recycled per year.