NEU Battery Materials Raises US$7.6 Million to Scale LFP Battery Recycling

Singapore-based NEU Battery Materials has closed an oversubscribed US$7.6 million funding round to scale its lithium iron phosphate (LFP) battery recycling operations and expand its supply of battery-grade lithium, according to company reports. The round was co-led by Shift4Good, a venture capital firm focused on transport and energy decarbonisation, and SGInnovate, a Singapore government-backed deep-tech investor. The financing follows the commissioning of NEU’s Singapore plant, which has an annual processing capacity of 1,300 tonnes, marking a transition from technology development to industrial scale-up.

New investors Lotus Singapore Group and M7 Holdings joined the round, alongside existing backers including Paragon Ventures I. NEU plans to use the proceeds to ramp up lithium production from LFP feedstocks, including cathode manufacturing scrap and end-of-life battery black mass, while expanding its international presence.

The funding comes amid growing demand for LFP batteries in electric vehicles (EVs) and battery energy storage systems (BESS). According to the International Energy Agency, LFP batteries account for more than 90% of battery storage systems globally and over 55% of EV batteries. As battery manufacturing and deployment expand, recycling is gaining importance as a means of recovering critical materials and strengthening lithium supply-chain resilience.

NEU says its patented electrochemical redox-targeting technology is designed specifically for LFP battery recycling. The process uses electricity, water and regenerative chemicals to recover lithium, with the company reporting emissions up to 83% lower than conventional hydrometallurgical and pyrometallurgical recycling methods. The technology is intended to improve lithium recovery economics while reducing waste and environmental impacts.

Co-founder and CEO Bryan Oh said the new funding would support deployment of the company’s modular recycling technology, increase battery-grade lithium production and help lower costs. Shift4Good co-founder and managing partner Sebastien Guillaud described LFP recycling as important to both decarbonisation and industrial supply-chain resilience. SGInnovate also reaffirmed its support for NEU’s growth.

With its new plant commissioned, NEU’s next priorities are to increase production, reduce costs and broaden its partner network. The company said its research and development programme has achieved key technical milestones ahead of schedule, providing a foundation for further commercial expansion and international deployment.

Source: NEU Battery Materials

SUNSHINE Spotlight: NEU’s funding round highlights investor interest in recycling technologies that recover lithium from LFP batteries, a growing battery chemistry whose material recovery needs are becoming more significant as EV and energy storage markets expand.