Singapore-based NEU Battery Materials has raised $7.6 million in an oversubscribed funding round co-led by venture capital firm Shift4Good and government-backed deep-tech investor SGInnovate to scale its lithium iron phosphate battery recycling operations.
The funding comes after NEU commissioned a Singapore factory with annual processing capacity of 1,300 tonnes, marking a shift from technology development to industrial-scale production, the company said in a statement.
The company will use the proceeds to ramp up production of battery-grade lithium from lithium iron phosphate (LFP) battery feedstock, including cathode manufacturing scraps and end-of-life battery black mass, as well as support its international expansion.
The round also drew new investors Lotus Singapore Group and M7 Holdings, alongside existing backer Paragon Ventures I.
In 2023, NEU Battery Materials raised $3.7 million in a seed round led by SGInnovate. ComfortDelGro Ventures, Shift4Good, Paragon Ventures I, and other angel investors joined the round.
NEU has developed a patented electrochemical process designed to recover lithium from LFP batteries. The company said its technology uses electricity, water and regenerative chemicals, generating less waste than conventional hydrometallurgical and pyrometallurgical recycling methods. It claims the process can reduce emissions by up to 83% compared with those alternatives.
“Our vision is to build cleaner and more resilient lithium supply chains for the ongoing energy transition,” said Bryan Oh, co-founder and CEO of NEU. The funding will support the expansion of the company’s recycling technology and help it produce battery-grade lithium at progressively lower costs, he added.
LFP batteries account for more than 90% of battery energy storage systems globally and over 55% of electric vehicle batteries, according to the statement, citing the International Energy Agency. Their growing adoption has increased the importance of recycling technologies that can recover lithium and help secure supplies of critical battery materials.
“LFP battery recycling is both a decarbonisation and an industrial sovereignty imperative,” said Sebastien Guillaud, co-founder and managing partner of Shift4Good, adding that NEU was entering a new phase of industrial scale-up.
SGInnovate’s head of investments, Hsien-Hui Tong, said the company plays a strategic role in the battery value chain and that the investor remained committed to supporting its growth.
NEU said it would focus on increasing production, lowering costs and expanding its network of partners as it prepares for international deployment.
