German battery recycling company Cylib has joined a consortium of 25 companies and research institutions working to develop sodium-ion battery technology and related recycling processes under the “SIB:DE Entwicklung” project, the company said.
The initiative, funded by Germany’s Federal Ministry for Research, Technology, and Space with 14.5 million euros ($15.8 million), will run from March 2026 through February 2029.
The project follows the earlier SIB:DE Forschung initiative launched in 2025, which focused on evaluating the role sodium-ion batteries could play in Europe’s energy and mobility transition.
Under the new program, consortium members aim to develop large-format sodium-ion battery cells suitable for commercial applications and establish processes to ensure their recyclability.
Cylib, based in Aachen, is leading the recycling workstream together with TU Braunschweig.
The company said the recycling work will pursue two approaches in parallel: conventional mechanical and hydrometallurgical processing, and direct recycling, in which active battery materials are returned to production without complete chemical breakdown.
“This method could significantly reduce processing costs, particularly for production scrap, while maintaining material quality,” Cylib said, adding that a pilot-scale demonstration is planned for early 2029.
“Sodium-ion batteries use abundant raw materials. Yet recycling is what makes the technology truly sustainable and scalable. This project establishes the foundation for a circular European sodium-ion value chain,” Lilian Schwich, co-chief executive of Cylib, said in a statement.
The consortium includes battery manufacturers such as VARTA, EAS Batteries and UniverCell, as well as engineering and materials firms including Jungheinrich, GROB-WERKE and FUCHS LUBRICANTS.
Scientific partners include multiple Fraunhofer institutes, RWTH Aachen University, Technical University of Munich and Karlsruhe Institute of Technology.