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BMW steps into battery recycling: Recyclers by-passed?

BMW Group is investing EUR 10 million in an inhouse battery recycling plant.

The Cell Recycling Competence Centre (CRCC) in Kirchroth, Bavaria will feature an innovative ‘direct recycling’ process, enabling the recovery and reuse of valuable materials from battery cell production waste and entire battery cells.

Recovered materials will feed directly into the carmaker’s pilot battery cell production, creating a closed-loop system. BMW is appearing to bypass the expertise and capacity of traditional battery recyclers, which raises the question whether and how their businesses will be affected.

‘Cost-efficient’ approach 

‘The CRCC adds another element to our expertise,’ says Markus Fallböhmer, senior vice president of battery production at BMW. ‘By integrating development, pilot production, and recycling, we’re building a sustainable lifecycle for battery cells while benefiting from short distances between our centres in Bavaria.’

BMW’s direct recycling process is claimed to avoid chemical treatments. Instead, it recovers critical materials such as lithium, cobalt and nickel directly for reuse in battery production. According to the car manufacturer, this approach is cost-efficient and environmentally friendly, addressing two key challenges: resource scarcity and high production costs.

Strategic location

The 2 200 M2 facility will be part of an expanded industrial site in Kirchroth-Nord. Leveraging its proximity to BMW’s Battery Cell Competence Centre in Munich and the Cell Manufacturing Competence Centre in Parsdorf, the plant will ensure ‘efficient’ material flow and minimal waste. The recovered materials will cycle back into production at Parsdorf, reinforcing BMW’s circular economy strategy.

The CRCC is expected to process ‘mid-double-digit tonnes’ of battery cell materials annually once operational. The facility will use energy recovered from discarded battery cells and rooftop solar panels.

The CRCC will be operated by Encory, a joint venture between BMW Group and Interzero Group, employing around 20 people.

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