Bosch and Porsche lead EUR 55 mn investment in Cylib's battery recycling expansion

Cylib, a sustainable end-to-end battery recycling firm, has successfully completed a EUR 55 million Series A funding round in equity financing. Co-led by the leading European climate tech venture capital firm World Fund and Porsche Ventures, the venture arm of sports car manufacturer Porsche AG, the funding round also saw participation from Bosch Ventures, DeepTech & Climate Fonds, NRW.Venture, and other significant investors.

This funding round, the largest ever raised by a European battery recycling company, was completed less than 24 months after Cylib started operations. Bosch Ventures' involvement marks its first venture co-investment with Porsche in Germany. Cylib will use the funds to industrialise its proprietary recycling technology, scaling operations at a secured brownfield industrial facility in Germany.

Broad support from key stakeholders

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This landmark investment brings together major stakeholders from climate tech, corporate automotive, industry, and public investment backgrounds to support Cylib. This consortium's formation underscores the significant dedication to building a resilient and sustainable battery infrastructure in Europe.

Also Read:Bosch Ventures boosts battery recycling with strategic investments in Cylib and Li Industries

Cylib's pioneering journey

Founded in 2022 in Aachen, Germany, following nearly a decade of research at RWTH Aachen University, Cylib was established by CEO Lilian Schwich, CTO Paul Sabarny, and COO Dr Gideon Schwich. Lilian Schwich is widely recognised as one of Europe’s leading battery recycling researchers.

Reflecting on the achievement, Lilian Schwich stated, “This funding round empowers us to embark on our next phase of expansion and deepen existing collaborations. We are immensely grateful for the trust of our partners and the successful projects we have conducted together. We look forward to offering our superior technology to even more customers and partners.”

Rising demand for battery recycling

The demand for battery recycling is rapidly increasing, driven by the growth of electric vehicles (EVs). Global EV sales soared by 35% to almost 14 million in 2023 and are expected to reach 17 million in 2024. To ensure the shift away from fossil fuels does not lead to dependence on scarce minerals, recycling of battery materials must improve. According to Fraunhofer ISI, the volume of lithium-ion batteries to be recycled in Europe will reach 2.1 million tonnes by 2040. Cylib’s innovative process aims to meet this demand, ensuring resilient battery supply chains in Europe.

World fund and Porsche Ventures on Cylib’s impact

Danijel Višević, General Partner at World Fund, commented, “Cylib exemplifies the rapid industrialisation of world-leading climate tech research. The company has created a highly efficient battery recycling process that offers real climate gains and delivers for major clients.”

Patrick Huke, Partner and Head of Porsche Ventures, added, “We at Porsche Ventures are thrilled to co-lead the Series A financing round of Cylib. Cylib is a perfect example of how leading scientific research can be commercialised quickly. We are excited to partner with the Cylib team to industrialise their innovative end-to-end recycling process, aligning with our sustainability ambitions.”

Cylib’s recycling process

Cylib’s proprietary process sets new standards in battery recycling. It allows for the complete recycling of all components in a lithium-ion battery, making it the only company to offer this comprehensive service. Cylib achieves a recycling efficiency of over 90%, reducing the environmental footprint of the recycling process by 30% compared to competitors, thanks to its water-based lithium and graphite recovery methods.

Swift industrialisation and future prospects

Cylib has swiftly progressed from its inception, initially raising €11.6 million in seed funding, which enabled the delivery of a successful pilot line in September 2023. The company has since completed projects for automotive OEMs, Tier 1 suppliers, and refineries. Now, Cylib is poised to scale its operations and become Europe’s primary battery recycler. The company, already boasting a team of over 60 professionals, plans to use the new funds for further key hires.

Cylib’s innovative battery recycling technology significantly reduces the carbon footprint of the battery value chain and enhances the resilience of European EV supply chains. With stringent EU regulations ranking EV battery materials as strategic critical raw materials, Cylib’s market-leading process helps companies overachieve these requirements, ensuring a sustainable and resilient battery infrastructure in Europe.