Unterschleissheim. In close collaboration with BMW Group, Encory is establishing an innovative Cell Recycling Competence Center (CRCC) in Kirchroth, Bavaria. The center will implement a direct recycling process, where valuable raw materials from battery cell manufacturing, as well as complete battery cells, will be mechanically broken down into their components and reintroduced into the production process. The goal is to close the resource loop and significantly increase sustainability in battery production.

“With this competence center, we are taking a major step toward a circular economy. Through direct recycling, we can efficiently recover the active materials from the battery cells and integrate them directly into the battery cell manufacturing process. This avoids complex preparation processes and/or additional extraction of critical metals such as lithium, cobalt, and nickel, creating a true circular economy” says Alexander Maak, Managing Director of Encory.

In the project, Encory takes on the role of responsible partner for planning, implementing, and operating of the recycling center. The commissioning of the facility is planned for the second half of 2025.

As part of the project, Encory is entering into a strategic partnership with Huayou Recycling Technology, one of the business units of Huayou Cobalt, which has unique closed-loop value chains for battery materials. The support in battery material technology, innovative recycling solutions and industrialization by Huayou will contribute to the success of the project.

Competence Center as a Model for a Circular Economy
The new direct recycling center will not only make a significant contribution to sustainable battery cell production but will also further strengthen Encory’s expertise in the circular economy. As a joint venture between BMW Group and Interzero Group, Encory develops pioneering solutions for the recovery, reprocessing, and recycling of products with a focus on vehicle components.

Direct Recycling: Resource-Conserving and Cost-Reducing
The direct recycling process differs from previous methods in that the raw materials from the battery cells do not need to be broken down into their individual components before new active material is produced. Instead, they are directly used in the next battery cell production. This saves a variety of technically demanding recycling steps, thereby reducing costs, energy consumption, and CO2 emissions.

Direct recycling will therefore play a key role in battery cell manufacturing in the coming years, reducing dependence on primary resources and making European production more competitive.

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