Materia AI Wins UK Funding to Build AI Backbone for EV Battery Recycling

Materia AI has secured a UK government grant to accelerate development of an artificial intelligence platform aimed at reshaping how electric vehicle batteries are recovered and reused, a step that comes as Britain prepares for a sharp rise in end-of-life batteries, according to Innovate UK reporting.

The award, issued under Innovate UK’s Catalyst for Early-Stage Startups programme, will support the creation of ReGenTrace AI, which the company describes as the UK’s first AI-led digital system purpose-built for a circular EV battery supply chain. The funding places the startup among a cohort of early-stage firms working in frontier technologies backed by the government to strengthen domestic industrial capabilities.

The move follows years of policy focus on battery sustainability as EV adoption accelerates across the UK. Government data show battery demand is expected to grow severalfold by the early 2030s, while analysts warn that recycling infrastructure and data transparency have not kept pace with vehicle sales. Previous initiatives have focused on physical recycling capacity, but digital coordination across collection, processing and reuse has remained fragmented.

Materia AI said the grant will be used to develop a minimum viable product for ReGenTrace AI, designed to manage battery flows from collection through materials recovery and reintegration into manufacturing. The platform is being built as a cloud-based system combining machine learning, predictive analytics and distributed ledger technology to track materials and optimise decision-making across the value chain.

Planned functions include automated logistics planning, real-time identification of battery materials, predictive modelling of black mass yields and tools to guide materials development. Blockchain-based traceability is intended to document material provenance, while integrated lifecycle and carbon analysis tools are expected to support compliance with tightening environmental reporting standards.

Industry observers note that the UK currently exports a significant share of its end-of-life battery materials due to limited domestic processing coordination, reducing economic value capture and increasing emissions linked to transport. Materia AI argues that a shared digital backbone could help recyclers and manufacturers scale operations more efficiently, lower costs and improve recovery rates while keeping critical minerals in the country.

The company plans to begin real-world validation of the platform by deploying early modules at a UK-based battery recycling facility by the end of March. That testing phase is intended to demonstrate whether AI-driven optimisation can deliver measurable gains in efficiency and transparency compared with existing practices.

Analysts say government-backed digital infrastructure projects could play a growing role as regulators and automakers push for higher recycling rates and clearer reporting across battery supply chains. With a surge of retired EV batteries expected later this decade, pressure is mounting on the sector to move beyond pilot projects toward scalable, data-led systems.

Source: Innovation News Network

SUNSHINE Spotlight: UK-backed funding for Materia AI underscores how digital platforms are becoming central to building a scalable and transparent EV battery recycling economy.