Technology
As demand for lithium explodes, battery recycling startup Tozero accelerates scale with initial $11.7 million
TozeroA Munich-based startup that recovers helpful raw materials from recycled lithium-ion batteries is preparing to scale. The startup just closed an oversubscribed €11 million (roughly $11.7 million) seed round to scale up production by constructing its first industrial-scale implementation facility (first of its kind, or FOAK).
Currently, Tozero’s pilot plant processes nine tons of used lithium-ion batteries a day, however the startup is aiming for unlimited capability in what it hopes can be just just a few years of scaling up its operations.
“Other competitors are raising much more money to get into an industrial plant. But because our process and our technology are so lean and efficient, we don’t need more than that to achieve our first industrial deployment or what the investing world would call a “first-of-its-kind” factory. This is what we intend to build,” co-founder and CEO Dr. Sarah Fleischer (pictured above, left) told TechCrunch.
The startup claims that after the Tozero process gains industrial speed and functionality, there can be no hard limits on what it may well achieve when it comes to battery recycling, so long as it has access to waste streams.
“The goal of FOAK is actually to get into the actual, continuous production – manufacturing – of the product,” added co-founder and managing director, Dr. Ksenija Milicevic Neumann.
“After that, unlimited, infinite, exponential growth will be possible,” Fleischer said. “Our idea is to independently run plants around the world. We’re focusing on Germany, Europe, and then moving on to North America. But once we get to this plant (FOAK), we will be able to expand Tozero into multiple dimensions around the world. This will therefore be a key milestone in the next phase of growth.”
The startup pointed to forecasts that global demand for lithium is it is anticipated to quadruple to three.1 million metric tons by 2030, driven by the rapid uptake of electrical vehicles and growing demand for large-scale renewable energy batteries. By comparison, lithium mining produced just 180,000 metric tons last 12 months, so recycling can have a key role to play in meeting this demand.
The EU Battery Directive will even introduce an obligation to get better not less than 80% of lithium from batteries by 2031.
“The technology works… So the core part of our technology is already in place. Now we just have to industrialize it,” Fleischer said.
Eliminating bottlenecks in recycling
The startup seeks to eliminate bottlenecks in lithium battery recycling with: water-based carbonation a recovery process that’s more environmentally friendly than conventional pyrometallurgy (smelting). Its lithium recovery method doesn’t involve using harsh acids, as would be the case with other battery recycling processes.
Tozero claims its method also leads to significantly lower emissions – 70% lower – in comparison with mining.
“Commodity security is, in a sense, national security,” Fleischer said. “There are so many underdeveloped industries in Europe that are starving for this material because Europe does not produce lithium carbonate; we import. If you look at (European Commission President) Ursula von der Leyen, she states that we import over 97% of lithium carbonate from China. We are therefore highly dependent on the Eastern Front and the mining industry.”
Access to black pulp, a by-product of the mechanical recycling of lithium batteries processed by Tozero, shouldn’t be restricted across borders. In terms of competition, Fleischer describes the market as a “completely blue ocean market” by which battery recycling efforts are largely focused elsewhere. The startup says it may well use black pulp from any style of lithium-ion batteries in order that waste streams may be mixed.
“Lithium will always be there (recyclable batteries), but other elements change – with innovations in battery production – so we don’t care if there is nickel, if there is, for example, a few percent less or more cobalt, but lithium is always present,” said Milicevic Neumann.
Tozero also recovers graphite from blackmass waste streams. The startup says its give attention to these two key raw materials is a “key point of difference” in comparison with other battery recycling players.
The give attention to lithium can also be why the startup’s customers are beating their strategy to its doors.
“Customers are just storming the place,” Fleischer said, stating that market demand is “far too high” for many industrial applications in Europe. Tozero has “over a billion dollars worth of clients in the pipeline who are interested in our material,” she said.
Tozero has delivered the primary batch of high-purity processed lithium to business customers this Aprilnine months after opening pilot facility in Germany.
The need for speed
Tozero was only founded in 2022, so how has it achieved something that larger players within the industry have seemingly didn’t do over the previous few a long time? The startup says it comes right down to focus, speed and inventive pondering.
Speed requires creativity when constructing hardware, Fleischer argued, explaining that the most important challenge for hardware startups is the delivery time of the vital hardware to scale.
“We break things quickly, learn, iterate and improve at a very rapid pace — probably along the lines of Elon Musk’s SpaceX principle — we just build things and see (what happens) until something breaks, we learn from it, iterate and we refine into very fast sprints, which is very unfamiliar to hardware companies,” Fleischer said.
“I would say we protect ourselves through speed,” she added, confirming that Tozero’s approach relies on “process innovations” which can be protected as trade secrets, although not patented. “The entire process, stages or parameters, sequence, method of performing specific activities, is completely our recipe for ‘Coca Cola’ (trade secret),” she added.
Tozero believes it might expand its approach to get better other raw materials that may be used as an “energy source”, although it might not specify what materials it might add later.
The overarching mission is to attain zero waste of key raw materials. “We are quite aware of (the broader challenges of decarbonizing in a sustainable way),” Milicevic Neumann told TechCrunch. “That’s why we also want to focus on recycling some other materials in the future.”
But if it wants to attain real impact, would not Tozero must license its trade secrets to others? They each say they have not fully selected their approach yet, but prefer to retain control of the method as they scale – although they’re open to partnerships.
“On the operational side, we believe that we can only truly deliver the highest quality if we operate the plants ourselves,” Fleischer said. “This can also apply to partners. I mean, we’re open to it. So I don’t want to say yes or no to licensing. Partnerships are great in terms of scale if they are helpful, but we will operate our own plants.”
Tozero’s seed round was led by NordicNinja, with participation from recent investors In-Q-Tel (an American strategic public-private fund), Honda and global infrastructure engineering giant JGC Group. The startup’s €3.5 million pre-season round, closed about two years ago, was led by Berlin-based Atlantic Labs. So far, the Tozero project has raised €17 million, which incorporates a €2.5 million grant from the EU’s research and development support body, the European Innovation Council.
“Tozero’s innovative approach to battery recycling is exactly what Europe needs to secure key supplies in the global electrification race, and Japan would like to cooperate,” Shin Nikkuni, co-founder and managing partner at NordicNinja, said in an announcement. “Sarah and Ksenija, two exceptional founders, have the knowledge and desire to transform the landscape towards sustainable battery solutions. We are excited to support the tozero team as they scale their technology and commercial operations and contribute to a more sustainable and independent energy future for all.”
Technology
Sequoia increases its 2020 fund by 25%
Sequoia says no going out, no problem.
According to data from the Silicon Valley enterprise capital giant, the worth of its Sequoia Capital US Venture XVII fund increased by 24.6% in June at the top of 12 months. Pitchbookwho analyzed data from the University of California Regents Fund.
Sequoia’s margin is notable since the fund hasn’t had any exits yet. This can be a positive development for the 2020 fund vintage, on condition that after the uncertain valuations of 2020 and 2021, this yr’s funds usually are not expected to perform well for any VC. The mismatch is probably going resulting from high AI valuations giving risks a way of an economic recovery that has yet to bear fruit in other sectors. Sequoia is an investor in high-growth artificial intelligence corporations including OpenAI, Glean and Harvey, amongst others.
Sequoia has raised over $800 million for Fund XVII, which closed in 2022.
Technology
Revolut will introduce mortgage loans, smart ATMs and business lending products
Revolutthe London-based fintech unicorn shared several elements of the corporate’s 2025 roadmap at a company event in London on Friday. One of the corporate’s important goals for next yr will be to introduce an AI-enabled assistant that will help its 50 million customers navigate financial apps, manage money and customize software.
Considering that artificial intelligence is at the middle of everyone’s attention, this move shouldn’t be surprising. But an AI assistant could actually help differentiate Revolut from traditional banking services, which have been slower to adapt to latest technologies.
When Revolut launched its app almost 10 years ago, many individuals discovered the concept of debit cards with real-time payment notifications. Users may lock the cardboard from the app.
Many banks now can help you control your card using your phone. However, they’re unlikely to supply AI features that might be useful yet.
In addition to the AI assistant, Revolut announced that it will introduce branded ATMs to the market. These will end in money being spent (obviously), but in addition cards – which could encourage latest sign-ups.
Revolut said it plans so as to add facial recognition features to its ATMs in the longer term, which could help with authentication without using the same old card and PIN protocol. It will be interesting to see the way it implements this technology in a way that complies with European Union data protection regulations, which require explicit consent to make use of biometric data for identification purposes.
According to the corporate, Revolut ATMs will start appearing in Spain in early 2025.
Revolut has had a banking license in Europe for a while, which implies it may offer lending products to its retail customers. It already offers bank cards and personal loans in some countries.
Now the corporate plans to expand into mortgage loans – some of the popular lending products in Europe – with an emphasis on speed. If it’s an easy request, customers should generally expect immediate approval and a final offer inside one business day. However, mortgages are rarely easy, so it will be interesting to see if Revolut overpromises.
It appears that the mortgage market rollout will be slow. Revolut said it was starting in Lithuania, with Ireland and France expected to follow suit. Although all these premieres are scheduled for 2025.
Finally, Revolut intends to expand its business offering in Europe with its first loan products and savings accounts. In the payments space, it will enable business customers to supply “buy now, pay later” payment options.
Revolut will introduce Revolut kiosks with biometric payments especially for restaurants and stores.
If all these features seem overwhelming, it’s because Revolut is consistently committed to product development, rolling out latest features quickly. And 2025 looks no different.
Technology
Flipkart co-founder Binny Bansal is leaving PhonePe’s board
Flipkart co-founder Binny Bansal has stepped down three-quarters from PhonePe’s board after making an identical move on the e-commerce giant.
Bengaluru-based PhonePe said it has appointed Manish Sabharwal, executive director at recruitment and human resources firm Teamlease, as an independent director and chairman of the audit committee.
Bansal played a key role in Flipkart’s acquisition of PhonePe in 2016 and has since served on the fintech’s board. The Walmart-backed startup, which operates India’s hottest mobile payment app, spun off from Flipkart in 2022 and was valued at $12 billion in funding rounds that raised about $850 million last 12 months.
Bansal still holds about 1% of PhonePe. Neither party explained why they were leaving the board.
“I would like to express my heartfelt gratitude to Binny Bansal for being one of the first and staunchest supporters of PhonePe,” Sameer Nigam, co-founder and CEO of PhonePe, said in a press release. His lively involvement, strategic advice and private mentoring have profoundly enriched our discussions. We will miss Binny!”
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