Sign up for our popular daily email to catch all the latest EV news!
tozero, a pioneering startup in lithium-ion battery recycling, has raised €11 million in an oversubscribed seed round led by NordicNinja. The funds will be used to construct tozero’s first industrial deployment plant, boost commercial production of recycled lithium, and grow the team. New investors in this round include In-Q-Tel, Honda, and JGC Group, alongside returning investors like Atlantic Labs, Verve Ventures, and Possible Ventures.
Key Highlights:
- €11 million seed funding secured, led by NordicNinja.
- New industrial deployment (FOAK) plant planned.
- New investors: In-Q-Tel, Honda, and JGC Group.
- Existing investors, including Atlantic Labs, increased their commitment.
- tozero aims to scale recycled lithium production and expand its team.
The surge in global lithium demand, projected to quadruple by 2030, poses a major supply chain challenge. Lithium plays a critical role in multiple industries, including EV batteries, ceramics, lubricants, and even high-performance glass used in smartphones. However, current lithium production falls far short of projected needs, with 97% of European lithium currently sourced from China. This dependency underscores the urgency for alternative, local lithium supplies to support Europe’s ambitions for battery production and energy security.
tozero is addressing these challenges with its proprietary recycling technology, which focuses on recovering critical raw materials from lithium-ion battery waste. Unlike traditional high-temperature smelting methods, which are emission-heavy and result in the loss of lithium and graphite, tozero’s approach retains these valuable materials while reducing emissions by an estimated 70%. This technology makes tozero the first company in Europe to successfully deliver recovered lithium to customers.
Founded in 2022 by Sarah Fleischer and Dr. Ksenija Milicevic Neumann, tozero has swiftly advanced from laboratory concepts to a scalable industrial solution. Within just two years, they have moved beyond initial breakthroughs at RWTH Aachen University to demonstrate real-world industrial capabilities. Fleischer, a seasoned entrepreneur, and Dr. Neumann, a leading metallurgy expert, are driving a mission to close Europe’s lithium supply gap while reducing carbon emissions and supply chain risks.
tozero’s agnostic approach to feedstock means the company can recycle a variety of battery types, producing high-purity recycled lithium suitable for industries such as ceramics, construction, and electric vehicles. With its asset-light, low-cost method, tozero is well-positioned to integrate into both local and global supply chains. Currently, the startup is working with battery waste suppliers across more than 10 countries, creating a local source of lithium that reduces Europe’s reliance on imports and lowers the associated carbon footprint.
The company’s first batch of high-purity recycled lithium was delivered to commercial customers in April, just nine months after opening its pilot facility in Munich. Additionally, tozero recently completed a pilot project with Circular Republic, reaching the EU’s 2031 lithium recovery target of 80% through a collaborative effort involving BMW, MAN, and Webasto. The new funding allows tozero to scale up its operations, targeting the processing of 30,000 tonnes of battery waste annually by 2026, setting a new standard for sustainable battery recycling.
The total funding now raised by tozero amounts to €17 million, which includes a €2.5 million grant from the European Innovation Council (EIC). Notable angel investors from the automotive and chemical sectors have also supported tozero, including Martin Hofmann (CTO of Volta Trucks), Axel Strotbek (former board member of Audi), and Jochem Heizmann (former board member of Volkswagen), among others.
Co-founder Sarah Fleischer commented, “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.”
The fresh investment from key global players not only underscores confidence in tozero’s innovative approach but also positions the startup as a significant contributor to the growing lithium-ion battery recycling market, which is projected to reach $101 billion annually by 2043. With a strong team and new funding, tozero is well-prepared to drive forward sustainable lithium solutions that are essential for the future of electrification.
Sign up for our popular daily email to catch all the latest EV news!
