Watercycle Technologies and cylib Partner on Graphite and Lithium Recovery from Battery Recycling Streams

According to company reports, Watercycle Technologies has signed a memorandum of understanding with cylib GmbH to develop a joint approach for recovering graphite and lithium from battery recycling operations in Europe.

The agreement establishes a framework for material supply and technology integration focused on processing graphite and lithium-bearing streams generated at cylib’s recycling facilities, including its demonstration plant in Aachen, Germany.

Under the arrangement, Watercycle plans to assess the purchase and refining of graphite material from cylib beginning in 2026, initially at pilot scale before potentially expanding to commercial volumes from cylib’s first industrial-scale recycling plant.

The companies said the collaboration is intended to improve resource recovery from end-of-life lithium-ion batteries while strengthening domestic supply chains for critical battery materials in Europe.

A central part of the partnership involves the treatment of lithium-bearing process water generated during battery recycling. Watercycle intends to apply its modular Direct Lithium Extraction and Crystallisation (DLEC) technology to recover lithium while also producing treated water as a secondary output.

Battery recyclers are increasingly looking to recover a broader range of materials beyond nickel, cobalt and lithium, with graphite emerging as a growing area of focus as electric vehicle battery volumes expand globally.

Europe has been accelerating efforts to localise battery raw material supply chains amid concerns over import dependence and geopolitical risks tied to critical minerals sourcing.

“We are pleased to announce our partnership with cylib as we explore opportunities for strategic collaboration in the battery recycling sector,” said Sebastian Leaper, co-founder of Watercycle Technologies. “By combining cylib’s advanced recycling capabilities with our modular mineral recovery technology, we can create a compelling circular model for recovering valuable minerals from end-of-life batteries.”

cylib said integrating advanced recovery systems into recycling operations could improve material efficiency and increase the economic value extracted from battery waste streams.

“Integrating innovative mineral recovery technologies with battery recycling is key to maximising resource efficiency,” said Gideon Schwich, co-chief executive officer and co-founder of cylib. “Our collaboration with Watercycle enables us to explore new ways to recover and refine graphite and lithium-bearing streams.”

The companies said they will also evaluate future expansion opportunities as additional recycling capacity comes online.

The agreement reflects broader industry efforts to develop integrated recycling and refining systems capable of returning battery materials directly into regional manufacturing supply chains.

Source: Watercycle Technologies

SUNSHINE Spotlight: European battery recycling companies are increasingly integrating advanced mineral recovery technologies to capture more value from graphite and lithium waste streams and strengthen regional supply security.