UK clean technology firm Altilium has secured £18.5 million in government grant funding to build a major new EV battery recycling facility, marking a significant step toward establishing a domestic circular supply chain for critical battery materials.

 

The funding comes 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 and Innovate UK. It will support construction of Altilium’s ACT3 facility in Plymouth, Devon — set to become the UK’s first commercial refinery dedicated to recovering critical materials from end-of-life EV batteries.

 

The plant is designed to process around 24,000 EV batteries per year, producing key battery intermediates including nickel mixed hydroxide precipitate (MHP), lithium sulphate, and graphite — all essential inputs for next-generation electric vehicle production.

 

By extracting these materials from recycled batteries, Altilium aims to reduce reliance on imported raw materials, strengthen UK energy security, and support the country’s growing automotive sector.

 

Construction is expected to begin in summer 2026, with commissioning targeted for the end of 2027. Once operational, ACT3 will produce approximately 5,200 tonnes per year of nickel MHP, 8,000 tonnes of lithium sulphate (1,000 tonnes LCE equivalent), and 5,400 tonnes of graphite, directly offsetting the need for virgin mineral extraction.

 

The project is also expected to create 70 high-value jobs in Plymouth, where Altilium already operates the UK’s only hydrometallurgical EV battery recycling pilot plant. It will also lay the groundwork for a much larger ACT4 facility planned for Teesside, which is expected to process 150,000 EV batteries annually and produce 30,000 tonnes of cathode active materials.

 

Christian Marston, COO of Altilium, said: “This funding marks a pivotal moment for Altilium and for the UK’s battery ecosystem. 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. 

 

"We are grateful to the APC and the UK Government for this strong vote of confidence in our technology, our team and our role in building a domestic, circular battery supply chain.”

 

The £18.5 million grant is also expected to unlock additional private investment, building on more than £17 million already raised from investors including SQM, Marubeni Corporation, and Mizuho Bank.

 

The ACT3 facility will industrialise Altilium’s proprietary hydrometallurgical process, capable of recovering over 95% of cathode and anode materials from battery waste. The company says the technology has already been validated at pilot scale, supplying materials for cell trials with automakers including Jaguar Land Rover and Nissan under earlier APC-backed programmes.

 

According to independent lifecycle analysis, the recycled materials can deliver up to 74% lower emissions compared with mined alternatives — a key advantage as demand for lithium and other battery minerals continues to surge.

 

Industry forecasts suggest UK battery scrap could reach 110,000 tonnes by 2035, yet the country currently lacks large-scale refining capacity, meaning most waste is exported to Asia for processing.