Tozero raises 11M euros in seed funding to ramp up battery recycling efforts

Tozero, a Germany-based lithium-ion battery recycler, has raised 11 million euros ($11.6 million) in an oversubscribed seed round led by London-based venture capital firm NordicNinja.

New investors joining the funding round include In-Q-Tel (IQT), automaker Honda and global infrastructure engineering company JCC Group. Existing investors such as Atlantic Labs, Verve Ventures and Possible Ventures also contributed to the fundraise.

Tozero plans to use the fresh capital to build its first industrial deployment plant, which will boost production of recycled lithium following the company’s first commercial delivery of the product in April by its operational pilot plant, and help it expand its team to support its growth plans.

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Citing Bain & Co. research, Tozero says lithium demand is set to quadruple by 2030 to an estimated 3.1 million metric tons, fueled by the rapid expansion of electric vehicles (EVs) and the growing need for large-scale renewable energy batteries. The critical material also plays an important role in various industries such as ceramics, lubricants, cement hardening for construction and the high-performance glass used in smartphones.

However, Tozero says last year’s total lithium production from mining was 180,000 metric tons—only 5 percent of demand—according to research conducted by the U.S. Geological Survey. Further, global lithium production is heavily concentrated in China, where 97 percent of European lithium originates from. Additionally, Tozero says the European Union aims to curb this dependence on the mining of raw materials with its EU Battery Directive, mandating that at least 80 percent of lithium must be recovered from batteries by 2031.

Tozero is addressing this “bottleneck” by recycling lithium and helping close Europe’s lithium supply gap while providing a local resource to ensure stable availability for a growing number of industries.

The 2-year-old company, founded by CEO Sarah Fleischer and Chief Technology Officer Ksenija Milicevic Neumann, says its hydrometallurgical process maximizes the recovery of materials such as lithium and graphite and allows them to reenter the supply chain while reducing the need for new material extraction and processing. The company adds that its process reduces CO₂ emissions by up to 70 percent compared with conventional lithium mining and processing techniques.

Tozero says its agnostic approach to feedstock enables the recycling of various battery types, allowing for production of high-purity recycled lithium that can be sold directly to industries for manufacturing end products. It claims its asset-light, low-cost method can integrate into local and global supply chains with ease and already is working with battery scrap suppliers across more than 10 countries. It delivered its first batch of recycled lithium to commercial customers in April, nine months after opening its pilot facility in Munich.

“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,” Fleischer says. “I’m excited to see what our rockstar team will achieve next. We’re establishing our [industrial deployment] plant now, but there is so much more we will be able to achieve in the future. We need a global solution tomorrow, as every moment counts as we fight the climate crisis. Together, let’s truly bring lithium-ion battery waste to zero.”

Recently, the company completed a pilot project with Circular Republic that it says demonstrated a stable lithium recovery rate by hitting the 2031 EU recovery target of 80 percent within an original equipment manufacturer (OEM) project involving BMW, MAN and Webasto, and is working with customers across the ceramics and construction industries. Tozero says it is on track to process 30,000 tons of battery scrap annually by 2026.

The recent funding takes the total raised by Tozero to 17 million euros ($17.9 million), including a grant of 2.5 million euros ($2.6 million) from the European Innovation Council.

“Tozero’s innovative approach to battery recycling is exactly what Europe needs to secure key supplies in the global electrification race, and Japan would love to collaborate,” says Shin Nikkuni, co-founder and managing partner at NordicNinja. “Sarah and Ksenija, two exceptional founders, have the expertise and drive to transform the landscape for sustainable battery solutions. We’re excited to support the Tozero team in scaling its technology and commercial operation and contributing to a more sustainable and independent energy future for all.”