VW Group on a cost-cutting drive
The Volkswagen Group (VW) plans to cut costs by 20 percent across all its brands by the end of 2028, a German business paper reported.
- Industry News
- 17 February 2026
BMW Group’s Cell Recycling Competence Centre in Salching is rapidly becoming a cornerstone of Europe’s transition toward a resilient circular battery economy.
Developed with Encory GmbH, the facility adopts a mechanical “direct recycling” technique that avoids the heat‑intensive or chemical‑based processes traditionally used to break down battery cells. Instead, unused or surplus cells are dismantled so that their cathode and anode materials can be reused with minimal reprocessing. This method preserves more of the material structure, reducing energy demand and emissions while enabling the recovered substances to re‑enter BMW’s production cycle far more quickly.
Operating inside a converted industrial hall of about 2,100 square metres equipped with rooftop photovoltaic systems, the centre is designed to scale to the mid double‑digit‑tonne range of recycled material annually, with various estimates placing this between 50 and 90 tonnes once the process is fully optimised. These recovered materials are redirected to BMW’s Cell Manufacturing Competence Centre in Parsdorf, allowing the company to maintain an exceptionally short recycling loop within Bavaria’s expanding battery‑technology network.
Encory, established by BMW and Interzero, operates the Salching facility, while BMW retains intellectual ownership of the recycling technology. Around 20 staff members manage disassembly, logistics and material recovery.
As demand for electric‑vehicle batteries accelerates, securing reliable access to raw materials has become a strategic priority across Europe. By demonstrating that high‑value battery components can be recovered efficiently without intensive chemical conversion, BMW and Encory provide a blueprint for reducing waste and strengthening supply‑chain resilience. Their work in Salching underscores the potential for regional circular‑economy systems to support both industrial growth and environmental responsibility at a pivotal moment for the automotive sector.
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