Lithium battery recycling startup tozero has raised €11M in an oversubscribed seed round led by NordicNinja.
New investors joining the round include In-Q-Tel (IQT), automotive giant Honda, and global infrastructure engineering giant JGC Group.
Existing investors including Atlantic Labs, Verve Ventures and Possible Ventures, also participated. The fresh capital will be used to build tozero’s first industrial deployment plant following the first commercial delivery
Global lithium demand is set to quadruple by 2030 to an estimated 3.1 million metric tons, fueled by the rapid expansion in EVs and the growing need for large-scale renewable energy batteries to combat the climate crisis.
It also plays a critical role in various industries, including ceramics, lubricants, cement hardening for construction and the high-performance glass used in smartphones. However, last year’s total lithium production from mining was only 180,000 metric tons, only 5% of future demand, and global production is heavily concentrated in China, where 97% of European lithium comes from, leading to a significant supply gap that highlights the urgent need for alternative sources.
In addition, the EU is aiming to curb this dependence on the mining of raw materials with the EU’s Battery Directive, mandating that at least 80% of lithium must be recovered from batteries by 2031.
This all presents significant challenges for the battery recycling industry, as large-scale industrial recovery has yet to be successfully demonstrated. tozero is addressing this critical bottleneck by recycling lithium, thereby closing Europe’s lithium supply gap and providing a local resource to ensure stable availability for a growing number of industries.
tozero delivered its first batch of recycled high-purity lithium to commercial customers in April nine months after opening its pilot facility in Munich. It recently completed a pilot project with Circular Republic, demonstrating a stable lithium recovery rate hitting the 2031 EU recovery target of 80% within an OEM project involving BMW, MAN and Webasto, and is working with customers across the ceramics and construction industries.
The recent funding takes the total raised by tozero to €17 million, including a €2.5 million grant from the European Innovation Council (EIC).
Sarah Fleischer, Co-founder and CEO of tozero, said: “Despite our limited resources as a two-year-old startup we’ve already made human history by being the first to ever deliver recycled lithium for end products in Europe, while our competitors are still lingering on the topic for many years. I’m excited to see what our rockstar team will achieve next— we’re establishing our FOAK plant now, but there is so much more we will be able to achieve in the future. We need a global solution tomorrow, as every moment counts as we fight the climate crisis. Together, let’s truly bring lithium-ion battery waste to zero!”
Shin Nikkuni, Co-Founder and Managing Partner at NordicNinja, added: “tozero’s innovative approach to battery recycling is exactly what Europe needs to secure key supplies in the global electrification race and Japan would love to collaborate. Sarah and Ksenija, two exceptional founders, have the expertise and drive to transform the landscape for sustainable battery solutions. We’re excited to support the tozero team in scaling its technology and commercial operation and contributing to a more sustainable and independent energy future for all.”
By Tech.eu
Source: Tech.eu