SQM Lithium Ventures has injected USD 9.4 million into Altilium, a British electric vehicle (EV) battery recycler, signalling a strategic move to bolster the company’s expansion efforts. The investment, part of a USD 12 million Series A funding round, underscores the growing importance of recycling in the EV industry.
Strategic investment
Sociedad Quimica y Minera de Chile’s (SQM) lithium business, a major player in the global lithium market, spearheaded the investment through its corporate venture arm. This significant funding infusion follows SQM’s initial investment of USD 2.6 million in Altilium last year, highlighting its commitment to supporting innovative solutions in the EV battery recycling sector.
Staying ahead of the curve
David Rousselle, SQM’s engineering manager and a board member at Altilium, emphasised that the investment enables SQM to stay ahead of the global recycling curve. As the demand for EVs surges, there is a pressing need to develop sustainable methods for recycling valuable battery minerals, including lithium, cobalt, and nickel.
Addressing China’s dominance
The rise of EVs has triggered intense competition to reclaim and recycle the crucial minerals embedded in their batteries. This move aims to challenge China’s dominance in the battery recycling sector, where the majority of EV batteries are currently shipped for processing.
European recycling initiatives
Altilium is among several firms in Europe ramping up their recycling efforts to establish a robust circular economy for EV batteries. Currently, most EV batteries in Europe are shredded into ‘black mass’ and exported to China. The investment will facilitate Altilium’s efforts to establish local recycling infrastructure, reducing reliance on overseas processing facilities.
Expansion plans
The fresh funding injection will enable Altilium to accelerate its expansion plans, including the establishment of a processing plant in England scheduled to commence operations in 2024. This facility will focus on processing cathode materials for automakers, marking a significant step towards achieving self-sufficiency in battery recycling within Europe.
Integrated recycling infrastructure
In addition to the plant in England, Altilium plans to set up recycling stations to convert battery cells into black mass, streamlining the recycling process. Furthermore, the company aims to establish a plant in eastern Europe to transform black mass into battery materials, fostering a closed-loop system for EV battery recycling.
Driving sustainability in the EV industry
The investment in Altilium underscores the growing recognition of the importance of sustainable practices in the EV industry. By investing in innovative recycling solutions, stakeholders aim to reduce reliance on virgin materials, minimise environmental impact, and promote the development of a circular economy for EV batteries.
As the EV market continues to expand, the demand for sustainable battery recycling solutions is set to surge. The investment in Altilium reflects a strategic move by SQM to capitalise on this growing market opportunity while contributing to the development of a more sustainable and eco-friendly automotive industry in the UK and beyond.