Tozero Secures €11 Million to Revolutionize Lithium Battery Recycling

Startup Aims to Close Europe’s Lithium Supply Gap with Innovative Recycling Technology
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. The fresh capital will support the development of Tozero’s first large-scale industrial recycling plant, following the company’s successful pilot project, and help scale its operations to meet growing demand for recycled lithium.

Tackling the Growing Lithium Demand Crisis
With the global push for electric vehicles (EVs) and renewable energy storage systems, lithium demand is expected to soar in the coming years. Research from Bain & Co. forecasts a quadrupling of lithium demand by 2030, reaching over 3 million metric tons. However, traditional lithium mining has struggled to keep up, with global production of lithium last year amounting to just 180,000 metric tons—only 5% of the expected demand. Additionally, Europe remains heavily reliant on China for its lithium supply, raising concerns over supply chain security.

In response to these challenges, the European Union has set ambitious goals to reduce its dependency on raw lithium extraction. The EU Battery Directive mandates that 80% of lithium used in batteries must be recovered and recycled by 2031. Tozero is positioned to play a key role in addressing this challenge by recycling lithium from used batteries, helping to fill the supply gap and ensure local, sustainable sources of lithium for industries such as EVs, high-performance glass, ceramics, and construction materials.

Hydrometallurgical Process: A Sustainable Solution
Tozero’s proprietary hydrometallurgical process is central to its ability to recycle lithium efficiently. The company’s method maximizes the recovery of valuable materials like lithium and graphite, reducing the need for new mining operations and minimizing environmental impact. The process is said to reduce CO2 emissions by up to 70% compared to conventional lithium mining, making it a greener alternative for lithium production.

The company’s approach is feedstock-agnostic, meaning it can recycle various battery types and produce high-purity recycled lithium, which can then be sold directly to industries for manufacturing. Tozero’s asset-light, low-cost model is designed to easily integrate into both local and global supply chains, and the company is already working with battery scrap suppliers across more than 10 countries.

Accelerating Growth and Milestones Achieved
Since its founding, Tozero has made significant strides in establishing itself as a leader 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, demonstrating a stable lithium recovery rate that met the EU’s 2031 recovery target of 80%. The project involved key OEMs like BMW, MAN, and Webasto, underscoring the growing demand for sustainable lithium sourcing.

Tozero aims to scale up its operations, with a target to process 30,000 tons of battery scrap annually by 2026. With the latest round of funding, the company plans to expand its industrial capabilities, grow its team, and meet the increasing demand for recycled lithium.

Global Recognition and Future Prospects
Tozero’s founders, Sarah Fleischer and Ksenija Milicevic Neumann, are optimistic about the future. Fleischer emphasized, “Despite being a young startup, we’ve made history by being the first to deliver recycled lithium for end products in Europe. As we scale, we’ll help solve a critical supply chain issue for the green economy.”

Shin Nikkuni, co-founder of NordicNinja, expressed confidence in Tozero’s potential, saying, “Tozero’s innovative recycling technology is exactly what Europe needs to stay competitive in the electrification race. We’re excited to support them as they scale their operations and help build a more sustainable and independent energy future.”