Altilium's £18.5M EV Battery Recycling Plant Boosts UK Supply Chain

The United Kingdom's push for a circular economy in electric vehicle (EV) battery production has received a significant boost with Altilium securing £18.5 million in grant funding. This substantial award, channeled through the UK government’s DRIVE35 Scale-Up Fund, administered by the Department for Business and Trade in collaboration with the Advanced Propulsion Centre UK (APC) and Innovate UK, will accelerate the development of critical battery recycling infrastructure.

This funding is earmarked for the construction of Altilium's groundbreaking ACT3 facility in Plymouth. Set to become the UK's inaugural commercial-scale refinery for recovering valuable materials from end-of-life EV batteries and manufacturing scrap, the plant represents a pivotal step in domesticating the battery supply chain. The facility's innovative EcoCathode process is designed to transform spent batteries into essential precursors and cathode active materials (CAM), directly feeding into the production of new batteries.

The ACT3 plant is engineered with a processing capacity of 24,000 EV batteries annually. Its output will include high-value intermediates such as nickel mixed hydroxide precipitate (MHP), lithium sulphate, and graphite – all indispensable components for the next generation of battery chemistries. This domestic production capability is crucial for reducing reliance on imported raw materials and bolstering the UK's automotive sector's competitiveness in the global EV market, a sector projected to see continued robust growth driven by regulatory shifts and consumer demand.

Construction of the advanced recycling facility is slated to commence in the summer of 2026, with operational commissioning anticipated by the end of 2027. This expansion is projected to generate approximately 70 new skilled jobs within the Plymouth region, contributing to local economic development and fostering expertise in cleantech manufacturing. Christian Marston, COO at Altilium, emphasized the strategic importance, stating, “By scaling our recycling technology and building the UK’s first commercial facility of its kind, we are closing the loop on battery materials and enhancing the growth, productivity and competitiveness of the UK automotive supply chain.”

Beyond the significant government backing, Altilium has also attracted substantial private capital, amassing over £17 million to date. This includes strategic investments from prominent industry players such as SQM, Marubeni Corporation, and Mizuho Bank, underscoring strong market confidence in the company's technology and business model. The convergence of public and private investment highlights a concerted effort to build a sustainable and resilient battery ecosystem within the UK.

The development of advanced battery recycling capabilities like those pioneered by Altilium is becoming increasingly vital. As EV adoption accelerates globally, the volume of end-of-life batteries will surge, creating both an environmental challenge and a significant economic opportunity. Facilities capable of efficiently and sustainably recovering critical minerals are essential for meeting future demand, reducing mining impacts, and achieving ambitious decarbonization targets. This initiative positions the UK at the forefront of this emerging industrial sector.