tozero

# High-Level Overview

tozero is a Munich-based battery recycling startup that recovers critical raw materials—lithium, graphite, nickel, cobalt, and manganese—from end-of-life lithium-ion batteries.[1][2] Founded in 2022 by mechanical engineer Sarah Fleischer and metallurgy researcher Ksenija Milicevic Neumann, the company addresses a fundamental supply chain vulnerability: as electric vehicle adoption accelerates globally, demand for battery materials far outpaces virgin mining capacity.[2][5]

The company solves a critical environmental and economic problem. Traditional lithium extraction via high-temperature fusion generates substantial emissions and material losses; tozero's proprietary process reduces emissions by approximately 70% compared to conventional mining while achieving an 80% recovery rate for both lithium and graphite at industrial scale.[2][5] This positions tozero at the intersection of circular economy principles and decarbonization—transforming toxic waste into a valuable resource for battery manufacturers, automotive firms, and other industries.[1][3]

# Origin Story

The company's founding is rooted in rigorous academic research. Co-founder Ksenija Milicevic Neumann published a breakthrough discovery in *Nature* while at RWTH University in Aachen; tozero transformed this lab-stage research into industrial reality in just two years, scaling the technology 20,000x from laboratory to commercial deployment.[5]

Early traction came quickly. By April 2024—nine months after opening its pilot plant in summer 2023—tozero delivered its first commercial shipment of recycled lithium to clients, already meeting the EU's 2031 recovery target of 80% six years ahead of schedule.[2][5] The company has also secured validation from industry leaders: a collaborative pilot project with BMW, MAN, and Webasto demonstrated stable performance, while recognition from Hello Tomorrow's 2024 Global Challenge and Norrsken's Top 100 impact startups designation underscore its credibility.[2]

Funding momentum reflects investor confidence. tozero closed an €11 million seed round (approximately $11.7 million) in late 2024, led by Japanese venture capital firm NordicNinja, and secured a €2.5 million grant from the European Innovation Council.[4][5] These resources are fueling construction of its first full-scale industrial plant (FOAK—first-of-a-kind commercial demonstration plant).[4][6]

# Core Differentiators

• Proprietary chemistry: The company's process operates without strong acids, delivering high-purity materials ready for direct use in end-product manufacturing—a significant advantage over conventional hydrometallurgical approaches.[2]

• Proven industrial scalability: Already operating at industrial scale with a pilot plant processing 1,500 tonnes of battery waste annually, tozero has demonstrated that its lab-stage discovery translates reliably to production environments.[2][6]

• Feedstock agnosticism: The technology recovers materials from all types of lithium-ion batteries, not just specific chemistries, broadening its addressable market and reducing dependency on particular battery designs.[2]

• Regulatory alignment: By meeting EU 2031 targets ahead of schedule, tozero positions itself favorably as battery recycling regulations tighten across Europe and globally.[2][5]

• Diversified customer base: Beyond battery manufacturers, tozero is expanding into ceramics and construction industries, reducing concentration risk and creating multiple revenue streams.[2]

# Role in the Broader Tech Landscape

tozero operates at a critical inflection point in the energy transition. Global lithium demand is projected to surge as electric vehicle penetration accelerates, yet mining capacity constraints and geopolitical supply risks create acute vulnerability in battery supply chains.[2][5] The company addresses this by localizing material recovery within Europe, reducing dependence on concentrated mining regions and volatile international markets.

The timing is strategically advantageous. Regulatory pressure—particularly EU battery directives mandating recovery targets—creates a tailwind for compliant recycling solutions.[2] Simultaneously, battery manufacturers face mounting pressure from customers and investors to demonstrate circular supply chains, making tozero's high-purity recycled materials increasingly valuable as a competitive differentiator.

tozero's success also signals a broader shift in how the climate tech ecosystem values material science. Rather than focusing solely on energy generation or storage, the company demonstrates that decarbonization requires closing material loops—transforming waste streams into productive assets. This positions battery recycling as a cornerstone of the circular economy narrative that now dominates climate investment.

# Quick Take & Future Outlook

tozero is executing a disciplined scaling strategy. The company projects treating 30,000 tonnes of battery waste annually by 2026, with targets of over 2,000 tonnes of recycled graphite production by 2027 and rapid expansion beyond 10,000 tonnes by 2030.[2][5] If achieved, these milestones would establish tozero as Europe's leading battery recycling operator and create a defensible moat through operational scale and customer relationships.

The company's trajectory hinges on three factors: (1) successful commissioning of its first industrial plant without cost or timeline overruns, (2) securing long-term offtake agreements with battery manufacturers to ensure feedstock and revenue stability, and (3) navigating competitive entry as the battery recycling sector attracts capital and talent. The founders' deep technical expertise and early regulatory alignment suggest strong execution capability, but scaling from 1,500 to 30,000+ tonnes annually represents a 20x operational challenge.

Looking forward, tozero's influence will likely extend beyond recycling into supply chain transparency and circular economy standards. As battery manufacturers increasingly market "circular" products, companies like tozero become essential infrastructure—not just for material recovery, but for credible sustainability claims. The company's ability to scale profitably while maintaining material purity will determine whether battery recycling becomes a commodity business or a high-margin, strategically critical capability.