Tozero Secures €11M to Scale Lithium-Ion Battery Recycling in Europe

Tozero, a European lithium-ion battery recycling startup, raises €11 million to build its first industrial plant, scaling recycled lithium production and reducing Europe's reliance on imports.

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Tozero, a European startup specializing in lithium-ion battery recycling, has secured €11 million in an oversubscribed seed funding round led by NordicNinja. The investment will support the construction of the company’s first industrial deployment plant, expansion of its team, and scaling of commercial production of recycled lithium. New investors include In-Q-Tel, Honda, and JGC Group, while existing backers such as Atlantic Labs, Verve Ventures, and Possible Ventures increased their commitments.

Global demand for lithium is expected to quadruple by 2030, posing significant supply chain challenges, particularly for industries reliant on electric vehicle (EV) batteries. Currently, 97% of Europe’s lithium supply is imported from China, highlighting the need for alternative local sources. Tozero aims to address this dependency through its proprietary recycling technology that recovers critical raw materials from lithium-ion battery waste. Unlike traditional high-temperature smelting methods, which are emission-intensive and result in the loss of lithium and graphite, Tozero’s process retains these valuable materials while reducing emissions by approximately 70%. The company asserts that it is the first in Europe to successfully deliver high-purity recycled lithium to customers.

Founded in 2022 by entrepreneur Sarah Fleischer and metallurgy expert Dr. Ksenija Milicevic Neumann, Tozero has rapidly advanced from laboratory concepts to a scalable industrial solution. Within two years, the company transitioned from initial breakthroughs at RWTH Aachen University to demonstrating real-world industrial capabilities. Fleischer and Dr. Neumann are committed to bridging Europe’s lithium supply gap while minimizing carbon emissions and mitigating supply chain risks.

In April, just nine months after opening its pilot facility in Munich, Tozero delivered its first batch of high-purity recycled lithium to commercial clients. The company has also achieved the European Union’s 2031 lithium recovery target of 80% through its collaboration with Circular Republic, a project involving partnerships with major corporations like BMW, MAN, and Webasto. With the new funding, Tozero plans to scale its operations with the goal of processing 30,000 tonnes of battery waste annually by 2026.

This latest investment brings Tozero’s total funding to €17 million, including a €2.5 million grant from the European Innovation Council (EIC). The startup has also attracted support from prominent angel investors such as Martin Hofmann, CTO of Volta Trucks, and Axel Strotbek, former board member of Audi.

Sarah Fleischer, Co-founder of tozero, stated, “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. I’m excited to see what our 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.”

Positioned at the forefront of the rapidly growing lithium-ion battery recycling market—which is projected to reach $101 billion annually by 2043—Tozero is poised to become a significant player. The company’s success will contribute to the future of electrification by providing a sustainable, local source of lithium, reducing Europe’s reliance on imports, and lowering the associated carbon footprint.

Source: EVMagz

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