Singapore-based deep-tech company NEU Battery Materials has secured US$7.6 million in an oversubscribed funding round to support the expansion of its battery recycling operations. The capital injection follows the commissioning of a new facility in Tuas, which is capable of processing up to 1,300 tonnes of battery materials annually, though it will initially operate below full capacity.
The company plans to deploy the funds primarily across three areas. First, it aims to optimize the newly opened facility’s operations and gather production data. Second, significant investment will be made in research and development to lower production costs and establish NEU as a leading low-cost supplier of battery-grade lithium. Third, the company intends to expand internationally, targeting partnerships with battery manufacturers in Europe and the United States to scale its Singapore-developed technology five to tenfold. This approach seeks to support the development of local recycling capabilities, enhancing countries’ lithium supply security and sovereignty, particularly in light of China’s dominance over the global lithium supply chain and Singapore’s lack of natural lithium resources.
NEU’s chief executive Bryan Oh explained that the company’s recycling process focuses on lithium iron phosphate (LFP) batteries, which account for more than 55% of electric vehicle batteries globally and exceed 90% in energy storage systems. LFP batteries, commonly used in mass-market electric vehicles such as those produced by BYD, are favored for their lower cost and enhanced safety features, making the recycling of LFP waste an urgent issue.
The company employs an electromechanical redox targeting technology that uses water and electricity to recover lithium, transforming battery waste into battery-grade lithium hydroxide and subsequently lithium carbonate. This process, according to Oh, is distinct in its scalability, sustainability, and reliance solely on water and electricity, reducing carbon emissions by up to 83% compared to conventional recycling methods.
While the new Tuas facility is not yet operating at full throughput, the objective is to refine the process through testing and data collection, creating a scalable model for widespread adoption. NEU is actively collaborating with manufacturers to ensure that the recycled lithium meets stringent quality and consistency requirements. Presently, the company primarily receives manufacturing scrap rather than end-of-life electric vehicle batteries, but it has prepared infrastructure to accommodate the anticipated increase in EV battery waste over the next decade.
The facility’s modular design allows for rapid expansion; adding more cells to the electrolyser stack could double production capacity within weeks. NEU’s scalable recycling technology is positioned to support Singapore’s ambitions in the green transition by enabling a more sustainable, localized lithium supply chain conducive to the growing electric vehicle and energy storage markets worldwide.