tozero, a European startup focused on lithium-ion battery recycling, has secured €11 million in an oversubscribed seed round, led by NordicNinja. This funding will enable the company to build its first industrial deployment plant, scale commercial production of recycled lithium, and expand its team. New investors in the round include In-Q-Tel, Honda, and JGC Group, while existing investors such as Atlantic Labs, Verve Ventures, and Possible Ventures have also increased their commitment.
The global demand for lithium is projected to quadruple by 2030, creating significant challenges for the supply chain, particularly in industries like electric vehicle (EV) batteries. At present, 97% of Europe’s lithium comes from China, making it critical to find alternative, local sources of the material. tozero aims to address this issue with its proprietary recycling technology, which focuses on recovering critical raw materials from lithium-ion battery waste. Unlike traditional high-temperature smelting methods, which are emission-heavy and lead to the loss of lithium and graphite, tozero’s technology retains these valuable materials and reduces emissions by approximately 70%. The company claims to be the first in Europe to successfully deliver high-purity recycled lithium to customers.
Founded in 2022 by Sarah Fleischer and Dr. Ksenija Milicevic Neumann, tozero has made rapid strides from laboratory concepts to a scalable industrial solution. Within just two years, the company has moved beyond initial breakthroughs at RWTH Aachen University and demonstrated its real-world industrial capabilities. Fleischer, an experienced entrepreneur, and Dr. Neumann, a metallurgy expert, are driving tozero’s mission to close Europe’s lithium supply gap while minimizing carbon emissions and supply chain risks.
The company’s first batch of high-purity recycled lithium was delivered to commercial clients in April, nine months after opening its pilot facility in Munich. tozero is also making strides in its collaboration with Circular Republic, having reached the EU’s 2031 lithium recovery target of 80%. The project involved partnerships with major companies such as BMW, MAN, and Webasto. With this new funding, tozero aims to scale its operations, targeting the processing of 30,000 tonnes of battery waste annually by 2026.
This recent investment brings the total funds raised by tozero to €17 million, which includes a €2.5 million grant from the European Innovation Council (EIC). The startup has also garnered support from notable angel investors, including Martin Hofmann, CTO of Volta Trucks, and Axel Strotbek, former board member of Audi.
Sarah Fleischer, co-founder of tozero, remarked, “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. I’m excited to see what our team will achieve next—we’re establishing our FOAK plant now, but there is so much more we will be able to achieve in the future.”
With its innovative approach and strong backing, tozero is positioned to be a significant player in the rapidly growing lithium-ion battery recycling market, which is projected to reach $101 billion annually by 2043. The company’s success will help support the future of electrification by creating a sustainable, local source of lithium, reducing Europe’s reliance on imports and lowering the associated carbon footprint.
