European battery recycling pioneer Tozero is raising cash to fund another path-clearing journey in the sector.
The latest $11.5 million funding round for the Munich startup was detailed in a company news release and by TechCrunch. It is expected to pay for a novel plant with "unlimited capacity," per the online tech publication.
"Despite our limited resources as a 2-year-old startup, we've already made human history by being the first to ever deliver recycled lithium for end products in Europe … I'm excited to see what our rockstar team will achieve next," Tozero CEO Sarah Fleischer said in the release.
At issue is the increasing amount of end-of-life batteries resulting from greater electric vehicle use. The International Energy Agency estimates that nearly one in every five vehicles sold in 2023 was an EV. Both EV use and spent battery volumes are expected by Tozero to increase dramatically through the end of the decade.
In fact, the company anticipates there being more than 275,000 tons of lithium-ion power packs needing recycling in Europe alone by 2030, per Tozero's website. If those units end up in a landfill, the valuable metals inside can leach into the environment, harming soil and groundwater, as noted by the Institute for Energy Research.
What's more, reusing the parts can help to prevent invasive extraction needed to gather fresh materials from the Earth. The Biden administration has invested $62 million for development of 17 projects stateside as part of the growing recycling market, projected by data collector Statista to be worth nearly $10 billion by 2028. BMW, Ford, and others are getting involved, too, Bloomberg reported.
For Tozero's part, it can already process about 9.9 tons of battery waste each day. The "first of its kind" plant the entrepreneurs are planning is intended to unlock "unlimited" ability, so long as the used packs are plentiful. As far as demand, company projections have lithium needs quadrupling to 3.4 million tons by 2030, all according to TechCrunch.
"Our idea is to operate the plants ourselves worldwide. We focus on Germany, on Europe, and then we go to North America," Fleischer said.
Tozero's process is billed as being cleaner than others that use "harsh" chemicals and smelting. It produces about 70% less heat-trapping air pollution than mining for the materials, officials said in the TechCrunch report.
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The Tozero website listed lithium, cobalt, manganese, graphite, and nickel as the crucial metals being harvested.
While making new batteries can be an energy-intensive, dirty process, it is still resulting in cleaner rides. The Massachusetts Institute of Technology reported that even EVs with the dirtiest of batteries are still cleaner during their lifespans than gas-burning rides. By switching to an EV now, you can prevent thousands of pounds of planet-warming fumes from hitting the air each year, as noted by government data. The air pollution is linked by NASA to an increased risk for severe weather.
You can also save up to $1,500 per year in fuel and maintenance expenses. Tax breaks totaling $7,500 for certain models are still available, too.
At Tozero, the team is leveraging investments for rapid growth. And business, according to TechCrunch, is booming.
"Customers are just storming this place," Fleischer said.
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