BMW and Encory launch direct battery recycling
Direct recycling is a purely mechanical process for reconditioning used batteries without involving chemical or thermal methods. This approach reduces the energy requirements, costs, and CO₂ emissions associated with recycling. In conventional battery recycling, battery cells or production scrap are either melted down (a thermal process) or separated using chemicals (a hydrometallurgical process) after mechanical shredding. The aim of these methods is to break down the materials in the battery into their original raw forms, enabling them to be reused to produce entirely new battery precursors and, ultimately, new battery cells.
The direct battery recycling approach adopted by BMW and Encory in Salching, Germany, and also pursued by other companies, takes a different path: the raw materials are not fully reverted to their original state. Instead, the cathode materials are separated from the anode materials. New cathodes can then be produced directly from these material mixtures.
While this method eliminates the energy-intensive steps required for breaking down materials and producing new precursors, it has a limitation: it is tied to the existing cell chemistry. For example, an NMC532 cell cannot be recycled into a significantly more modern NMC811 cell. Nevertheless, for advanced battery cells with higher energy density, this remains a promising approach.









At the new CRCC, BMW states that direct recycling will be scaled up and implemented in stages, enabling the annual recycling of battery cell material in the mid-double-digit tonne range once fully operational. The raw materials recovered in Salching will be processed internally by BMW, specifically at the pilot production facility for battery cells at the company’s Battery Cell Manufacturing Competence Centre (CMCC) in Parsdorf. BMW also suggests that enabling cell manufacturers to adopt direct recycling for series production is a conceivable next step.
As reported, the CRCC in Salching was established in an existing hall. “In addition to the production area and warehouse space of around 2,100 m², the building also offers just under 350 m² of offices and break rooms, as well as photovoltaic systems on the roof,” BMW explains. The official operator of the facility is Encory GmbH, a joint venture between the BMW Group and the Interzero Group. The company develops and implements logistics and consulting solutions, particularly in the retrieval, recycling, and refurbishment of vehicle components. However, BMW emphasises that the intellectual property for the recycling process ‘is fully owned by the BMW Group.’
“Our direct recycling process puts us at the forefront of the industry,” explains Markus Fallböhmer, SVP of Battery Production at BMW AG. “This technology has tremendous potential to further optimise battery cell production.”




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