UK startup Altilium secures £18.5 million to establish the first commercial EV battery refinery in Britain.

      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 establish ACT3, the nation’s first commercial refinery dedicated to recovering critical minerals from aging electric vehicle batteries. Positioned in Plymouth, Devon, the facility aims to recycle 24,000 EV batteries annually using Altilium’s unique EcoCathode™ process, resulting in battery-grade materials that generate up to 74% lower carbon emissions than mined alternatives and creating 70 new jobs. Additionally, a separate grant from DRIVE35 supports a research partnership with luxury vehicle manufacturer JLR and Warwick Manufacturing Group to produce UK-made EV battery cells containing both recycled cathode and anode materials for the first time.

      The funding sources

      The £18.5 million is part of the DRIVE35 Scale-Up Fund, a program operated by the Department for Business and Trade alongside the Advanced Propulsion Centre UK and Innovate UK. DRIVE35 is part of the UK government's larger £2.5 billion initiative to enhance domestic electric vehicle supply chains and battery manufacturing capabilities. In a time when private investment in climate technology in Europe dropped to a five-year low in early 2025, government-supported industrial grants have become an increasingly vital funding source for companies developing the essential infrastructure for energy transitions.

      Altilium, which has already raised over £17 million through private investments from key partners like Marubeni Corporation and Mizuho Bank, viewed the announcement as a significant milestone. Dr. Christian Marston, COO and co-founder, stated, “This funding signifies a crucial moment for Altilium and the UK’s battery ecosystem. By expanding our recycling technology and establishing the UK’s first commercial facility of its kind, we are creating a closed loop for battery materials and boosting the growth, efficiency, and competitiveness of the UK automotive supply chain.” The grant is also anticipated to attract additional private investments from both new and current shareholders.

      What the ACT3 facility will produce

      ACT3 will be located in Plymouth, Devon, where Altilium already runs the UK’s only hydrometallurgical pilot plant for EV battery recycling. Construction of the facility is complete, and equipment setup is set to commence in summer 2026, with plans to begin operations by the end of 2027. Once operational, ACT3 will recycle 24,000 end-of-life EV batteries annually, utilizing Altilium’s EcoCathode™ hydrometallurgical approach to recover over 95% of cathode metals and more than 99% of graphite from battery waste. The result will be essential intermediate materials for battery cell production, including nickel mixed hydroxide precipitate, lithium sulfate, and graphite, all crucial for the next generation of cathodes and anodes. An independent lifecycle assessment indicates that these recycled materials have up to 74% lower carbon emissions compared to their mined counterparts.

      The plant will generate 70 new jobs at the Plymouth site. Altilium is not the only company advancing this model toward commercial implementation; Tozero initiated Europe’s first industrial battery recycling plant in Germany in March 2026, indicating that recovery capacity on the continent is increasing alongside the number of batteries reaching end-of-life.

      The urgency of supply chain concerns

      The rationale behind ACT3 is clear. Indonesia dominates the global market for nickel mixed hydroxide precipitate, while China processes the majority of the world's lithium and graphite used in battery production. British manufacturers facing a complex risk landscape, including geopolitical instability, fluctuating prices, and China's recently implemented export controls on graphite which extend to various lithium-battery components through 2025, are under pressure. Trade tariffs have exacerbated existing worries about the security of hardware and materials supply chains throughout European industries in 2025, heightening the political and commercial necessity for domestic alternatives. Altilium’s recycling operations offer a solution to reduce this dependence. European battery manufacturers can position themselves against Asian competitors using sustainability, recyclability, and regulatory compliance as their differentiating factors rather than solely focusing on cost. The verified lifecycle assessment data showing a 74% emissions reduction of Altilium’s recycled materials provides a compelling value proposition that aligns with automotive customers' growing need to lower their supply chain carbon footprints.

      The roadmap and collaborations

      ACT3 is intended to be the initial phase in a two-part domestic expansion. Altilium's proposed ACT4 facility in Teesside, located in north-east England, is designed to handle 150,000 end-of-life EV batteries per year and produce 30,000 tonnes of cathode active materials annually, which could fulfill roughly 20% of the UK’s demand for battery materials by 2030. Together, the Plymouth and Teesside facilities would represent the most significant domestic battery material recovery infrastructure ever attempted in the UK.

      The second DRIVE35 grant announced concurrently supports a collaborative research and development initiative with JLR and Warwick Manufacturing Group. This project builds on a previous programme by the