Altilium Targets UK EV Battery Recycling Leadership with £18.5M in 2026

LONDON, April 10, 2026 — Altilium, a Plymouth-based clean technology company founded in 2020, has secured £18.5 million from the UK government’s DRIVE35 Scale-Up Fund to construct the country’s first large-scale EV battery recycling facility. This milestone is part of a broader £138.1 million package aimed at bolstering the UK’s automotive supply chain and reducing reliance on overseas battery materials, primarily sourced from China.

Executive Summary

• Altilium received £18.5 million in funding from the UK government’s DRIVE35 Scale-Up Fund.
• The new facility, ACT3, will be the first in the UK to recycle EV batteries at scale.
• ACT3 will process up to 24,000 batteries annually and create 70 skilled jobs in Plymouth.
• ACT3 is a stepping stone to a larger plant in Teesside, planned to meet 20% of the UK’s battery needs by 2030.

Key Developments

Altilium’s ACT3 facility is set to process up to 24,000 end-of-life EV batteries annually, recovering critical materials such as nickel mixed hydroxide precipitate (MHP), lithium sulphate, and graphite. The plant is expected to produce 5,200 tonnes of MHP, 8,000 tonnes of lithium sulphate, and 5,400 tonnes of graphite per year, materials essential for manufacturing new EV batteries.

The DRIVE35 grant is the largest government award Altilium has received to date, supplementing prior funding from the Faraday Institution’s Battery Challenge and the Automotive Transformation Fund. The facility is projected to create approximately 70 skilled jobs in Plymouth, where Altilium currently operates its ACT2 pilot plant, which became operational in late 2025.

Looking ahead, Altilium plans to scale up its efforts with ACT4, a proposed facility in Teesside that would process scrap from over 150,000 EVs annually. If realized, ACT4 would be among the largest EV battery recycling plants in Europe, producing 30,000 metric tonnes of cathode active materials, potentially meeting 20% of the UK’s battery demand by 2030.

Market Context

The rapid adoption of electric vehicles (EVs) worldwide has created a pressing need for sustainable battery production and recycling solutions. Currently, the UK is heavily reliant on imported battery materials, particularly from China, leaving the nation vulnerable to supply chain disruptions and geopolitical risks. Establishing domestic recycling capabilities is crucial to reducing environmental impact, stabilizing supply chains, and supporting the UK’s transition to net-zero emissions by 2050.

Globally, the EV battery recycling market is projected to exceed $24 billion by 2030, driven by increasing EV adoption and stringent environmental regulations. For more on [related automotive developments](/ai-in-automotive-industry-examples-in-2025). Companies like Altilium are positioned to capitalize on this trend, with their innovative recycling technologies addressing both economic and environmental challenges in the sector.

BUSINESS 2.0 Analysis

Altilium’s funding milestone marks a significant step forward for the UK’s clean energy and automotive sectors. The £18.5 million grant from the DRIVE35 Scale-Up Fund underscores the government’s commitment to fostering innovation and reducing reliance on imported battery materials. However, the challenges ahead are substantial. Scaling up from a pilot plant (ACT2) to a fully operational facility (ACT3) requires not only financial investment but also technical expertise and robust supply chain management. Additionally, the planned ACT4 facility in Teesside represents an even more ambitious undertaking, both in terms of scale and complexity.

From an economic perspective, the creation of 70 skilled jobs in Plymouth is a welcome boost to local employment, but the broader impact lies in the potential to establish the UK as a leader in EV battery recycling. By recovering critical materials like nickel, lithium, and graphite domestically, Altilium could help mitigate supply chain risks while contributing to the circular economy. This aligns with broader industry trends, as automakers and governments worldwide increasingly prioritize sustainability and resource efficiency.

However, competition in the EV battery recycling market is intensifying. European players such as Northvolt and Umicore are also ramping up their recycling capabilities, while China continues to dominate the global battery supply chain. For Altilium, securing long-term partnerships with automakers and battery manufacturers will be crucial to ensuring the commercial viability of its operations.

Why This Matters for Industry Stakeholders

The development of ACT3—and eventually ACT4—has far-reaching implications for a range of stakeholders:

• Automakers: Access to recycled materials locally can reduce costs and enhance supply chain stability.
• Investors: The growing EV market offers opportunities for returns, but success depends on execution and scaling.
• Government: Supporting domestic recycling aligns with national security and sustainability goals.
• Communities: The creation of skilled jobs in Plymouth and Teesside supports local economic development.

Forward Outlook

As Altilium moves forward with ACT3, the company’s ability to meet its operational and production targets will be closely watched. The successful commissioning of ACT3 could serve as a proof-of-concept for larger-scale facilities like ACT4, helping to attract additional funding and partnerships. However, potential challenges include regulatory hurdles, competition from established players, and the technical complexity of scaling recycling operations.

In the longer term, Altilium’s strategic focus on Teesside could position the UK as a leader in the European EV battery recycling market. With the global EV market expected to grow exponentially by 2030, the demand for recycled battery materials is set to rise, providing a significant growth opportunity for innovative players like Altilium. That said, execution risks remain high, and investors should monitor the company’s progress closely.

Key Takeaways

• Altilium secured £18.5M to build the UK’s first large-scale EV battery recycling plant.
• The ACT3 facility in Plymouth will process 24,000 batteries annually and create 70 jobs.
• The plant will recover critical materials like nickel, lithium, and graphite for reuse.
• Altilium’s long-term goal is a larger facility in Teesside to meet 20% of UK battery needs by 2030.

References

1. Source: TechFundingNews
2. Bloomberg
3. Financial Times
4. More Automotive Coverage
5. Energy Sector Updates