The UK is set for its first electric vehicle battery recycling plant.
Altilium has been awarded £18.5 million in grant funding through the UK government’s DRIVE35 Scale-Up Fund, delivered by the Department for Business and Trade in partnership with the Advanced Propulsion Centre UK (APC) and Innovate UK.
The funding will support the construction of Altilium’s new ACT3 recycling plant in Plymouth, Devon. Construction of the facility is expected to commence in summer 2026, with commissioning planned for the end of 2027.
The Plymouth-based firm, founded by a trio of investment and commodities professionals, says the facility will have the capacity to process 24,000 EV batteries per year and recover critical minerals from them.
These include nickel mixed hydroxide precipitate (MHP), lithium sulphate and graphite, which are all essential components for next-generation battery manufacturing.
The firm says that by recovering these materials from recycled feedstocks, Altilium is establishing a domestic circular supply chain for low carbon battery materials in the UK, reducing reliance on imported raw materials, strengthening energy security and supporting the UK’s automotive sector.
The expansion is expected to create 70 new high value jobs in Plymouth, where Altilium already operates the UK’s only hydrometallurgical pilot plant for EV battery recycling.
The project will also provide the foundation for the company’s industrial scale ACT4 recycling plant in Teesside, which will have capacity to process 150,000 EV batteries per year, producing 30,000 tonnes per year of cathode active materials (CAM).
Altilium was founded by CEO Kamran Mahdavi, COO and president Dr Christian Marston and finance director Sean Joseph in 2020. Mahdavi has over 20 years experience in the commodities sector; Dr Marston previously spent 13 years at global trading and investment company Sumitomo Corporation, where he managed a number of businesses units including energy products, and has a PhD in materials science; and Joseph has 23 years’ experience as an investment banking professional.
“This funding marks a pivotal moment for Altilium and for the UK’s battery ecosystem,” said Dr Marston.
“By scaling our recycling technology and building the UK’s first commercial facility of its kind, we are closing the loop on battery materials and enhancing the growth, productivity and competitiveness of the UK automotive supply chain.”
The £18.5m grant funding is expected to unlock further private finance from new investors and existing shareholders. Altilium has secured over £17m in private investment to date, including strategic investments from SQM, Marubeni Corporation and Mizuho Bank.
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