Battery Resourcers Secures $70M Funding for Battery Recycling

Battery Resourcers Secures $70 Million in Funding

Battery Resourcers, a company pioneering a closed-loop system for lithium-ion battery materials, has successfully obtained $70 million in a mid-round funding initiative. This capital injection will facilitate the expansion of its commercial activities across both European and North American markets.

Innovative Recycling and Material Production

Headquartered in Worcester, Massachusetts, Battery Resourcers goes beyond simple battery recycling. The company has developed a unique process to transform recycled battery components into essential battery materials.

Specifically, they produce nickel-manganese-cobalt cathodes and highly purified graphite, a key component in anodes. These refined materials are then intended for resale directly to battery manufacturers, completing the circular loop.

Investor Participation

This funding round welcomed participation from Hitachi Ventures as a new investor. Existing investors also contributed, including Orbia Ventures, InMotion Ventures (Jaguar Land Rover’s venture arm), Doral Energy, At One Ventures, TDK Ventures, and Trumpf Ventures.

Expansion of Recycling Capacity

Battery Resourcers previously secured $20 million in Series B funding just over five months ago. This earlier investment was earmarked to expedite the launch of its inaugural commercial-scale facility.

This facility will possess the capacity to process 10,000 tons of batteries annually. According to CEO Michael O’Kronley, the plant is slated to become operational in the first quarter of 2022, although the specific U.S. location remains undisclosed.

European Market Focus

The newly acquired funding will support the establishment of two additional commercial-scale facilities in Europe. These sites are projected to be fully operational by the close of 2022.

Battery Resourcers aims to achieve a total recycling capacity of 30,000 tons across its three facilities by the end of the following year. Production of cathode materials will be integrated into these sites in the subsequent year.

Strategic Rationale for European Expansion

O’Kronley explained that the decision to expand into Europe is driven by the anticipation of a larger market compared to the U.S.

“Europe shares the U.S.’s concerns regarding the retention of vital battery materials within the supply chain,” he stated. He further noted that European regulations already mandate battery recycling by OEMs and are likely to extend to require the incorporation of recycled materials in battery production.

“Combined with the substantial number of gigafactories announced in Europe, relative to the U.S., we, along with many others, believe the European market will surpass the North American market in size.”

Shift Towards Localized Supply Chains

Currently, the majority of critical battery materials are manufactured in Asia. However, O’Kronley highlighted a discernible shift within the industry.

“The battery material supply chain is evolving from a highly concentrated model to a more geographically diverse operation,” he explained. “This involves both Asian companies establishing a presence in Europe and North America, and new entrants, like Battery Resourcers, supplying these regions.”

Localization of the supply chain is becoming increasingly essential, and Battery Resourcers is positioned to play a key role in this transformation.

Collaboration with OEMs and Material Testing

O’Kronley revealed that the company is currently engaged in discussions with numerous OEMs and consumer electronics companies, though specific details remain confidential.

He did disclose that vehicle manufacturers and battery producers have already utilized Battery Resourcers’ cathode material in battery construction for testing and comparative analysis against “virgin” cathodes.

Vision for a Vertically Integrated Supply Chain

“Battery Resourcers believes that a vertically integrated supply chain is crucial for maximizing the value derived from spent batteries,” O’Kronley emphasized.

“We are progressing upstream by producing the engineering materials that are directly reintroduced into the manufacturing of new batteries.”