Tozero Secures Funding to Scale Lithium Recycling Operations
Tozero, a German startup focused on lithium-ion battery recycling, has raised €11 million ($11.6 million) in a seed funding round. Led by NordicNinja, with additional backing from In-Q-Tel, Honda, JCC Group, and other investors, this funding will support the development of Tozero’s first large-scale industrial recycling plant. The company’s successful pilot project has proven the viability of their innovative recycling process. Tozero aims to address the increasing global demand for recycled lithium.
Europe Faces Growing Lithium Demand and Supply Chain Issues
The global shift to electric vehicles (EVs) and renewable energy storage systems is driving an explosive demand for lithium. According to research from Bain & Co., global lithium demand will quadruple by 2030, reaching over 3 million metric tons. However, traditional lithium mining is struggling to meet this surge, with global production last year amounting to just 180,000 metric tons. Europe is also heavily dependent on China for its lithium supply, heightening concerns over supply chain security.
To meet this demand, the European Union (EU) has set ambitious goals. The EU Battery Directive requires that 80% of lithium in batteries must be recovered and recycled by 2031. This is where Tozero steps in. By recycling lithium from used batteries, Tozero helps close the supply gap, ensuring a sustainable and local source of lithium for various industries, including electric vehicles, high-performance glass, ceramics, and construction materials.
Tozero’s Sustainable Hydrometallurgical Process
At the core of Tozero’s success is its proprietary hydrometallurgical process. This innovative technology enables efficient recycling of lithium and graphite, reducing the environmental impact of mining operations. According to Tozero, the process lowers CO2 emissions by up to 70% compared to traditional lithium mining methods. The company’s feedstock-agnostic approach allows them to recycle various battery types and produce high-purity lithium. This recycled material can be sold directly to industries for manufacturing, supporting sustainable energy production.
Tozero’s Milestones and Future Growth
Since its founding, Tozero has made impressive progress in the recycling space. In April 2024, the company delivered its first batch of recycled lithium to commercial customers just nine months after opening its pilot facility in Munich. The company also completed a successful pilot project with Circular Republic, meeting the EU’s 80% lithium recovery target for 2031. Tozero’s collaboration with major OEMs like BMW, MAN, and Webasto highlights the growing demand for sustainable lithium sources.
Tozero is poised for rapid expansion. The company aims to process 30,000 tons of battery scrap annually by 2026. The recent round of funding will enable Tozero to scale its operations, grow its team, and meet the increasing demand for recycled lithium.
Global Recognition and a Sustainable Future
Tozero’s founders, Sarah Fleischer and Ksenija Milicevic Neumann, are optimistic about the company’s future. Fleischer notes that Tozero is the first to deliver recycled lithium in Europe for end products, setting a precedent for sustainability in the region. Shin Nikkuni, co-founder of NordicNinja, has expressed confidence in Tozero’s technology, which he believes is crucial for Europe to stay competitive in the electrification race.
Tozero’s innovative recycling technology is playing a key role in building a more sustainable and independent energy future for Europe, and the company is well-positioned to contribute to the green economy.
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