NEU raises $7.6M to advance LFP recycling, boost supply chain

NEU Battery Materials, a Singapore-based material security company focused on recycling lithium iron phosphate (LFP) batteries, has announced the oversubscribed close of its USD 7.6 million funding round co-led by Shift4Good, a global venture capital platform investing in the decarbonisation and resilience of transport and energy, and SGInnovate, a Singapore government-backed Deep Tech investor and ecosystem builder. 

The funding comes off the back of NEU’s newly commissioned 1,300-ton-per-year Singapore factory. The capital will support the ramp-up of producing battery-grade lithium from LFP feedstock such as cathode production scraps and end-of-life black mass, and the company’s international expansion, according to a media release.

The round saw participation from new investors including Lotus Singapore Group and M7 Holdings, as well as existing backers such as Paragon Ventures I.

“The funding will catalyse the scale-up and deployment of our modular LFP recycling technology, enabling us to expand the production of vital battery-grade lithium, and at progressively lower costs to our customers,” said Bryan Oh, Co-founder and CEO of NEU Battery Materials. 

NEU has developed a patented electrochemical redox targeting technology designed to close the loop on LFP batteries, making lithium recovery scalable, cost-efficient and more sustainable, the media release said.

“NEU has developed a differentiated solution to recover battery-grade lithium from LFP feedstock and is now entering a new phase of industrial scale-up, thereby helping build more resilient supply chains,” said Sebastien Guillaud, Co-founder and Managing Partner at Shift4Good. 

“NEU plays a strategic role in the battery value chain, and we remain committed to supporting its growth,” said Hsien-Hui, Head of Investments at SGInnovate.