altilium and lunaz battery recycling project

£89 million of funding awarded to develop cutting edge new EV technology

Nic Ryan

The Government has announced the winning projects that are to be awarded a share of £89 million of funding.

The funding has been awarded through the Advanced Propulsion Centre UK (APC), in support of ambitions to build an end-to-end supply chain for zero emission vehicles (ZEVs) in the UK.

£45.2 million of this investment comes from the Government, backed by a further £42.7 million from the automotive industry.

The 20 winning projects include hydrogen-powered off-road vehicles, a new lithium scale-up plant and revolutionary new electric vehicle (EV) battery systems.

“Together with industry, we’re providing a huge £89 million of funding to drive 20 ground-breaking net zero tech projects which will help grow the economy and create UK jobs in the industries of the future,” said Nusrat Ghani, Minister for Industry and Economic Security.

“From net zero tractors to cutting-edge battery projects, we’re taking decisive action to back the UK’s innovators and ensure we remain at the forefront of zero emission vehicle technology.”

The winners include Altilium, who will be partnering with Lunaz to develop an innovative and sustainable solution for the safe transportation and discharging of end-of-life EV batteries.

Altilium plans to open the UK’s largest EV battery recycling plant in Teesside in 2026.

The facility will have the capacity to recycle batteries from 150,000 EVs a year, producing 30,000 MT of Cathode Active Materials (CAM) for return and reuse in the EV battery supply chain.

Today’s announcement comes on top of funding also being invested by the Government through the Automotive Transformation Fund (ATF) to develop a high-value end-to-end electrified automotive supply chain in the UK.

This includes unlocking private investment in gigafactories, battery material supply chains, motors, power electronics, and fuel cell systems. The ATF is being delivered by the Department for Business and Trade in partnership with the APC.

A full breakdown of the winning projects can be found here.