Materials

Lithium-ion battery waste refinery receives £1.7 million investment

Lithium Salvage has received further investment to expand its battery recycling facility, capable of recovering 98 per cent of shredded battery material.

Lithium Salvage teamBattery recycling firm Lithium Salvage has secured £1.7 million in investment from a funding round led by Northstar Ventures, as the company moves forward with plans to develop a lithium-ion battery waste refinery in Sunderland.

The funding will support the scaling up of Lithium Salvage’s production process and the expansion of its Sunderland site. The company aims to establish an end-to-end household lithium-ion battery recycling facility by 2026.

The plant will extract valuable metals such as lithium, manganese, cobalt, and nickel, which can be recovered and reused. According to the International Energy Agency, demand for critical material such as lithium may multiply 40-fold by 2040.

Tom O’Neill, Investment Manager at Northstar Ventures, commented: “The Fund looks to support high-potential businesses that are seeking to start up or grow in Sunderland. Lithium Salvage is tackling a major environmental issue, whilst establishing a pioneering household Lithium-ion battery materials recycling facility in the Sunderland city region that builds on its strengths in battery technology and electrification.”

Battery recycling process

The firm’s refining process begins with the shredding and separation of feedstock batteries, dividing the valuable materials contained within them.

The batteries are destroyed in a fluid or stable inert atmosphere to prevent hazardous reactions, after which plastics are separated from ferrous and non-ferrous particles, foils, and electrolytes. Each component is then sent for further processing.

The separated black mass and graphite are chemically refined into seven metals, which are solubilised and precipitated as pure metal salts.

According to Lithium Salvage, the process achieves a recovery rate of more than 98 per cent of the shredded battery material.

Investment and support

The latest round of funding includes contributions from Sixth Wave Ventures, NPIF II – Maven Equity Finance (managed by Maven as part of the Northern Powerhouse Investment Fund II), Gaspara Asset Management, and business angel investors from across the UK.

Lithium Salvage’s technology was initially supported by Innovate UK and collaborations with Teesside University, the Centre for Process Innovation, GAP Group, Pennine Energy and 6th Engineering.

Michael Dickens, Investment Manager at Maven Capital Partners, commented: “We’re delighted to support Li-Sal with its plans to commercialise a UK refinery for waste Li-Bat materials. Simon and the team have built an impressive business and we look forward to supporting them as they seek to operate the UK’s first end to end household appliances Lithium-ion battery recycling facility based in Sunderland.”

Sarah Newbould, Senior Manager at British Business Bank, added: “Innovative organisations that contribute to the green economy are exactly the type of businesses that NPIF II aims to empower through making finance more accessible to Northern entrepreneurs. This investment demonstrates how funding can generate a wider positive impact beyond business and create a more sustainable future for everyone.”

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