tozero Launches Battery Recycling Plant in Germany to Produce Lithium and Critical Materials

Germany-based startup tozero has commissioned its first industrial demonstration plant in Bavaria, marking a step toward scaling domestic production of critical battery materials in Europe. Located at the Chemical Park Gendorf, the facility is designed to process end-of-life batteries into lithium, graphite, and nickel-cobalt materials, supporting regional efforts to reduce dependence on imported resources.

The plant, constructed in approximately six months, has an annual processing capacity of more than 1,500 tonnes of battery waste. From this input, the facility is capable of producing high-purity lithium carbonate alongside recovered graphite and a nickel-cobalt mix. The output is intended to be reintroduced directly into manufacturing supply chains, with the lithium recovery volume equivalent to diverting batteries from around 6,000 electric vehicles from landfill each year.

The recycling process is based on tozero’s proprietary hydrometallurgical technology, which operates without the use of acids. The company states that the method enables recovery of materials in a single processing cycle while maintaining purity levels suitable for battery-grade applications. This approach is designed to improve efficiency compared with conventional multi-step recycling systems and reduce environmental impact.

The development comes amid rising demand for critical raw materials driven by electric vehicle adoption, grid-scale energy storage, and broader electrification trends. Europe currently relies heavily on imports for these materials, with most lithium and graphite sourced from outside the region. The project aligns with policy initiatives such as the EU’s Critical Raw Materials Act, which targets increased domestic sourcing, including a goal of 25% supply from recycling.

For tozero, the facility represents a transition from pilot-scale operations to industrial deployment. The company has previously completed validation of its recycled lithium and graphite with battery material manufacturers and reported recovery rates exceeding 80% for lithium. The demonstration plant is expected to serve as a foundation for a planned commercial-scale facility by 2030, with significantly higher output capacity.

From a strategic perspective, the project positions recycling as a potential contributor to Europe’s resource security by tapping into growing volumes of end-of-life batteries. As material demand is projected to rise sharply, particularly for lithium and graphite, recycling is increasingly viewed as a complementary supply source alongside mining.

The expansion also reflects broader industry efforts to establish circular supply chains for battery materials, reducing reliance on virgin resources while addressing supply constraints. Companies across the value chain are exploring recycling as a means to stabilize input costs and improve sustainability performance.

Source: tozero

SUNSHINE Spotlight: tozero’s industrial-scale battery recycling plant highlights the growing role of recycling in securing Europe’s supply of critical materials for the energy transition.