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Li Industries raises $36M for new facility

Illustration of the Earth as a battery.

Illustration: Aïda Amer/Axios

Battery recycling startup Li Industries has closed a Series B round of $36 million to build its next recycling facility.

Why it matters: Lithium iron phosphate (LFP) batteries are quickly gaining market share but aren't easily recycled. Li Industries says it's cracked that code.

How it works: Li Industries claims it can economically and sustainable recycle LFP batteries, which are powering a growing wave of EVs and have been a challenge to recycle.

Zoom in: The round, which will ultimately close at $42 million, was co-led by Bosch Ventures, Khosla Ventures and LG Tech Ventures, and included new investors Formosa Smart Energy Tech Corp., Anglo American Decarbonization Ventures and Chevron Technology Ventures.

  • Existing investors Shell Ventures and Myriad Ventures also joined.
  • The Pineville, North Carolina-based company, founded in 2017, will use the funds to build a 10,000-ton recycling facility using its tech.

The big picture: The Inflation Reduction Act has helped kick-start momentum around new battery recycling infrastructure in the U.S.

  • To qualify for tax credits, a portion of critical minerals in EV batteries have to originate from extraction or processing in the U.S. or countries with free trade agreements.
  • The growing demand for EVs is also boosting the need for new battery recycling facilities.

State of play: There's a handful of investor-backed players building battery recycling plants in the U.S. including Redwood Materials, Ascend Elements, Li-Cycle and Green Li-ion.

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