BMW Establishes Cell Recycling Competence Centre in Lower Bavaria

December 3, 2024

The Cell Recycling Competence Centre (CRCC), which BMW is constructing in the Straubing-Bogen district of Lower Bavaria, will introduce direct recycling—a process allowing the mechanical dismantling of residual battery production materials and entire battery cells into their valuable components, which can then be used for pilot production of new battery cells.

"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," said Markus Fallböhmer, Senior Vice President of Battery Production at BMW.

BMW is investing approximately €10 million (US$10.5 million) in the new Competence Centre, with installation work at the building expected to begin in the second half of 2025.

The direct recycling method diverges from traditional approaches, where raw materials are often reverted to their original chemical state. Instead, materials such as lithium, cobalt, graphite, manganese, nickel, and copper are fed directly back into the cell production cycle without undergoing energy-intensive chemical or thermal processes. The innovative recycling technique, developed at the Competence Centres in Munich and Parsdorf, will be implemented on a larger scale at the new CRCC.

The facility will span 2,200 square meters and will be part of an expansion of an existing building in the Kirchroth-Nord industrial park. Notably, electrical energy derived from discharged cells will be captured and used to operate the recycling systems, while photovoltaic systems on the roof will further contribute to the facility's energy needs.

The CRCC will be built and operated by Encory—a joint venture between the BMW Group and Interzero Group. Each partner holds a 50% stake in Encory, and the new centre will employ around 20 people.

BMW’s new Competence Centre underscores the company's commitment to a more sustainable and circular battery supply chain. As the use of battery cell raw materials like lithium and cobalt drives up production costs, the ability to recycle these materials in-house helps both economically and environmentally, reducing dependency on resource-intensive mining operations.

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