NEU Battery Materials bags US$7.6M to mine lithium from the world’s least-loved battery

NEU Battery Materials has raised US$7.6 million in a funding round to develop its technology for mining lithium from lithium iron phosphate (LFP) batteries. The round was co-led by Shift4Good and SGInnovate, both of which have a vested interest in the sector. The capital will be used to expand NEU's 1,300-tonne-per-year factory in Singapore, ramping up production of battery-grade lithium from LFP feedstock and expanding internationally.

This move comes as LFP batteries, which are abundant and cheap to recycle, are expected to make up a large portion of global battery waste in the coming years. Southeast Asia, particularly Singapore, is poised to benefit from this trend as electric vehicle (EV) sales in the region are projected to make up more than half of total vehicle sales by 2026.

NEU's technology uses electrochemical redox targeting to recover lithium from LFP battery waste, which it claims reduces emissions by up to 83% compared to conventional methods. The company's modular approach allows for incremental scaling of its facilities, potentially enabling processing of up to 300,000 tonnes of LFP feedstock per year.

However, NEU faces stiff competition from established players such as China's GEM and CATL, as well as North American and European companies. The success of NEU's LFP recycling venture will depend on its ability to deliver cost-effective solutions in a market where lithium prices are volatile.