Battery Recycling Revolution: Munich Startup Tozero Secures $11.7M to Transform Lithium Battery Waste
In a groundbreaking development for the green technology sector, Tozero, a Munich-based battery recycling innovator, has secured €11 million ($11.7 million) in seed funding to scale up its revolutionary lithium-ion battery recycling technology.
Breaking New Ground in Battery Recycling
Dr. Sarah Fleischer and Dr. Ksenija Milicevic Neumann, the driving forces behind Tozero, are transforming how we handle battery waste. Their current pilot plant already processes nine tons of lithium-ion battery waste daily, but this is just the beginning of their ambitious journey.
The timing couldn’t be better. Experts predict a fourfold increase in global lithium demand to 3.1 million metric tons by 2030. The booming electric vehicle market and growing needs for renewable energy storage are driving this surge. Last year’s lithium mining production of 180,000 metric tons fell far short of future demands, making recycling crucial.
A Cleaner, Greener Solution
What sets Tozero apart is their innovative water-based carbonation process. Unlike traditional recycling methods that use harsh chemicals or high-temperature smelting, their approach is environmentally friendly and produces 70% fewer emissions than mining. This breakthrough comes at a critical time, as the EU’s Battery Directive will soon require 80% lithium recovery from batteries by 2031.
The startup processes “black mass”—the leftover material from mechanically recycled batteries. Their method can handle any type of lithium-ion battery, making it incredibly versatile. Dr. Fleischer explains, “The technology works… Now we just have to industrialize it.”
European Independence and Market Demand
Europe currently imports over 97% of its lithium carbonate from China, creating a significant dependency. Tozero’s technology could help change this dynamic. The company has already secured customers valued at over a billion dollars, demonstrating the significant market demand for their recycled materials.
This April, just nine months after opening their pilot facility in Germany, Tozero delivered their first batch of recycled high-purity lithium to commercial customers. The company’s rapid progress since its 2022 founding has caught the attention of major investors.
Investment and Future Plans
NordicNinja led the seed round, with the following notable participants:
- In-Q-Tel (U.S. strategic public-private fund)
- Honda
- JGC Group (global infrastructure engineering giant)
To date, Tozero has raised €17 million, including a €2.5 million grant from the European Innovation Council. The company plans to expand beyond Germany to the rest of Europe and North America, with their sights set on unlimited growth potential.
Shin Nikkuni, co-founder and managing partner at NordicNinja, praised Tozero’s approach: “Their innovative solution is exactly what Europe needs to secure key supplies in the global electrification race.”
Tozero’s groundbreaking technology could play a crucial role in closing the battery recycling loop and securing a more sustainable future for clean energy technologies, as the world strives to meet growing energy storage demands while reducing environmental impact.