UK startup Altilium secures £18.5 million to establish the country’s first commercial EV battery refinery.

      In summary, Altilium, a clean technology firm based in the UK, has obtained £18.5 million in grant funding from the government’s DRIVE35 Scale-Up Fund to construct ACT3, the nation’s first commercial facility aimed at recovering critical minerals from end-of-life electric vehicle batteries. Situated in Plymouth, Devon, this plant will process 24,000 EV batteries annually by utilizing Altilium’s patented EcoCathode™ process, producing battery materials with carbon emissions reduced by up to 74% compared to mined alternatives, while also creating 70 new jobs. Additionally, a separate DRIVE35 grant supports a collaborative research initiative with luxury automaker JLR and Warwick Manufacturing Group to produce, for the first time in the UK, EV battery cells that incorporate both recycled cathode and anode materials.

      The funding source and its implications

      The £18.5 million is part of the DRIVE35 Scale-Up Fund, a program executed by the Department for Business and Trade in collaboration with the Advanced Propulsion Centre UK and Innovate UK. DRIVE35 is part of the UK's larger £2.5 billion commitment to enhance domestic electric vehicle supply chains and battery manufacturing capabilities. As private investment in European climate technology hit a five-year low in early 2025, government-backed industrial grants have become a crucial source of funding for companies developing the necessary infrastructure for the energy transition.

      Altilium, which had previously garnered over £17 million in private investment from strategic partners like Marubeni Corporation and Mizuho Bank, characterized this announcement as a transformative moment. “This funding represents a crucial turning point for Altilium and for the UK’s battery ecosystem,” stated Dr. Christian Marston, COO and co-founder. “By expanding our recycling capabilities and establishing the UK’s first commercial facility of its kind, we are completing the cycle on battery materials and bolstering the growth, productivity, and competitiveness of the UK automotive supply chain.” The grant is also anticipated to attract further private investment from both new and existing investors.

      Output of the ACT3 facility

      ACT3 will be established in Plymouth, Devon, where Altilium currently runs the only hydrometallurgical pilot plant in the UK for EV battery recycling. The construction of the facility is already finished, with equipment installation slated to commence in summer 2026, aiming for operational status by the end of 2027. Once in operation, ACT3 will process 24,000 end-of-life EV batteries each year, utilizing Altilium’s EcoCathode™ hydrometallurgical technique, which recovers over 95% of cathode metals and more than 99% of graphite from battery waste. The resulting materials are critical intermediate substances required for battery cell production: nickel mixed hydroxide precipitate, lithium sulphate, and graphite, all vital for next-generation cathode and anode fabrication. An independent lifecycle assessment indicates that these recycled materials exhibit carbon emissions up to 74% lower than their mined counterparts.

      The facility will create 70 new jobs at the Plymouth site. Altilium is not the only company pursuing this model at a commercial scale; Tozero inaugurated Europe’s first industrial battery recycling plant in Germany in March 2026, indicating that the continent's recovery capacity is increasing alongside the number of batteries reaching the end of their life cycle.

      The urgency of the supply chain situation

      The rationale behind ACT3 is clear. Indonesia currently dominates the global supply of nickel mixed hydroxide precipitate, while China is responsible for the processing of most of the world’s lithium and graphite for battery manufacturing. UK car manufacturers are facing a compounded risk from geopolitical instability, price fluctuations, and the export controls imposed by China on graphite in late 2024, which have since been broadened to various lithium-battery components through 2025. Tariffs on trade have exacerbated existing concerns regarding the security of hardware and material supply chains in European industries in 2025, reinforcing the political and commercial arguments for domestic alternatives. Altilium’s recycling operations present a solution to this dependency.

      European battery producers can distinguish themselves from Asian competitors through sustainability, recyclability, and compliance with regulations rather than just on cost per unit, and the source and carbon credentials of recycled British battery materials provide exactly the value proposition needed. The recycled materials from Altilium are supported by verified lifecycle assessment data indicating a 74% reduction in emissions, a metric that becomes increasingly significant as automotive customers are pressured to decarbonize their supply chains.

      The strategic plan and collaborations

      ACT3 represents the initial phase in a two-stage domestic expansion plan. Altilium’s proposed ACT4 facility in Teesside, northeast England, is intended to handle 150,000 end-of-life EV batteries annually and produce 30,000 tonnes of cathode active materials each year, which is projected to meet about 20% of the UK’s demand for battery materials by 2030. Together, the Plymouth and Teesside plants would