Quick Takeaways
- urope accelerates large-scale LFP battery recycling as Germany-backed funding pushes industrial capacity into deployment phase.
- The Dormagen project closes a critical gap in Europe’s EV battery supply chain by enabling domestic LFP material recovery at scale.
On 19 December 2025, Germany-based battery recycling company cylib announced a major expansion milestone after securing €63.4 million in public funding to scale its operations in Dormagen. The investment significantly accelerates Europe LFP battery recycling expansion, addressing a critical gap in the continent’s electric vehicle and energy storage supply chain.
The grant, awarded by the German Federal Ministry for Economic Affairs and Energy under the STARK program, supports the second construction phase of cylib’s industrial facility. With this expansion, the total planned recycling capacity will rise to 60,000 tonnes per year, equivalent to processing approximately 140,000 electric vehicle batteries annually.
Founded in Aachen in 2022, cylib has progressed rapidly from laboratory research to pilot-scale validation and is now preparing for full industrial deployment at Chempark Dormagen. The company employs around 120 specialists and targets the start of commercial production in 2027. Combined non-dilutive public funding and Series A equity financing have now exceeded €140 million, underscoring strong confidence in cylib’s technology and long-term role in Europe’s battery ecosystem.
Europe LFP Battery Recycling Expansion Through Industrial-Scale Capacity
The Dormagen expansion will establish Europe’s first dedicated industrial-scale recycling line for Lithium Iron Phosphate batteries. A new 30,000-tonne LFP processing line will operate alongside an equally sized NMC recycling line, enabling the site to handle all major battery chemistries from end-of-life packs, production scrap, and black mass.
While European recycling infrastructure has traditionally focused on high-value NMC batteries, LFP chemistry is now gaining rapid market traction. LFP batteries account for nearly half of global electric vehicle battery demand and dominate stationary energy storage installations. Despite this growth, Europe currently lacks large-scale LFP recycling infrastructure, increasing reliance on imported raw materials.
By enabling Europe LFP battery recycling expansion at scale, the project directly reduces dependency on external supply chains and supports domestic recovery of critical battery materials.
Strategic Importance for Europe’s Battery Supply Chain
Industry pilots conducted across Europe have highlighted the urgent need for commercial LFP recycling capacity. The Dormagen facility bridges this gap by combining chemistry flexibility with industrial throughput, positioning Europe to respond to changing battery market dynamics.
The project strengthens Europe’s resilience by enabling local material recovery, stabilizing supply availability, and supporting compliance with evolving EU battery regulations. It also aligns with broader efforts to localize battery value chains amid geopolitical and trade uncertainties.
Regional Transformation and Sustainability Impact
The STARK-supported expansion contributes directly to economic and industrial transformation in North Rhine-Westphalia’s Rhineland region. Key outcomes include:
The Dormagen facility will operate with closed-loop water systems, minimal waste generation, and full compliance with EU Battery Regulation requirements. Following production launch in 2027, capacity will be scaled further in subsequent phases.
Advanced Recycling Technology Enabling Circularity
cylib’s proprietary water-based OLiC process enables efficient recovery of lithium, graphite, nickel, cobalt, manganese, and iron phosphate compounds from used batteries and manufacturing scrap. The closed-loop system achieves more than 90 percent recycling efficiency while delivering recovered materials with a substantially lower carbon footprint than conventional mining.
The technology has been validated at the company’s Aachen pilot facility, which continues to function as a research and development center supporting continuous innovation in battery recycling and sustainable materials.
By combining industrial scalability with chemistry flexibility, Europe LFP battery recycling expansion through projects like Dormagen represents a decisive step toward a resilient, circular, and low-carbon battery ecosystem.
The grant, awarded by the German Federal Ministry for Economic Affairs and Energy under the STARK program, supports the second construction phase of cylib’s industrial facility. With this expansion, the total planned recycling capacity will rise to 60,000 tonnes per year, equivalent to processing approximately 140,000 electric vehicle batteries annually.
Founded in Aachen in 2022, cylib has progressed rapidly from laboratory research to pilot-scale validation and is now preparing for full industrial deployment at Chempark Dormagen. The company employs around 120 specialists and targets the start of commercial production in 2027. Combined non-dilutive public funding and Series A equity financing have now exceeded €140 million, underscoring strong confidence in cylib’s technology and long-term role in Europe’s battery ecosystem.
Europe LFP Battery Recycling Expansion Through Industrial-Scale Capacity
The Dormagen expansion will establish Europe’s first dedicated industrial-scale recycling line for Lithium Iron Phosphate batteries. A new 30,000-tonne LFP processing line will operate alongside an equally sized NMC recycling line, enabling the site to handle all major battery chemistries from end-of-life packs, production scrap, and black mass.
While European recycling infrastructure has traditionally focused on high-value NMC batteries, LFP chemistry is now gaining rapid market traction. LFP batteries account for nearly half of global electric vehicle battery demand and dominate stationary energy storage installations. Despite this growth, Europe currently lacks large-scale LFP recycling infrastructure, increasing reliance on imported raw materials.
By enabling Europe LFP battery recycling expansion at scale, the project directly reduces dependency on external supply chains and supports domestic recovery of critical battery materials.
Strategic Importance for Europe’s Battery Supply Chain
Industry pilots conducted across Europe have highlighted the urgent need for commercial LFP recycling capacity. The Dormagen facility bridges this gap by combining chemistry flexibility with industrial throughput, positioning Europe to respond to changing battery market dynamics.
The project strengthens Europe’s resilience by enabling local material recovery, stabilizing supply availability, and supporting compliance with evolving EU battery regulations. It also aligns with broader efforts to localize battery value chains amid geopolitical and trade uncertainties.
Regional Transformation and Sustainability Impact
The STARK-supported expansion contributes directly to economic and industrial transformation in North Rhine-Westphalia’s Rhineland region. Key outcomes include:
- Creation of approximately 180 additional jobs in a transitioning industrial region
- Establishment of Europe’s first large-scale LFP recycling capability
- Material recovery rates exceeding 90 percent for both LFP and NMC batteries
- Greenhouse gas emission reductions of up to 80 percent compared with primary raw material extraction
- Strengthened collaboration across the European battery value chain
The Dormagen facility will operate with closed-loop water systems, minimal waste generation, and full compliance with EU Battery Regulation requirements. Following production launch in 2027, capacity will be scaled further in subsequent phases.
Advanced Recycling Technology Enabling Circularity
cylib’s proprietary water-based OLiC process enables efficient recovery of lithium, graphite, nickel, cobalt, manganese, and iron phosphate compounds from used batteries and manufacturing scrap. The closed-loop system achieves more than 90 percent recycling efficiency while delivering recovered materials with a substantially lower carbon footprint than conventional mining.
The technology has been validated at the company’s Aachen pilot facility, which continues to function as a research and development center supporting continuous innovation in battery recycling and sustainable materials.
By combining industrial scalability with chemistry flexibility, Europe LFP battery recycling expansion through projects like Dormagen represents a decisive step toward a resilient, circular, and low-carbon battery ecosystem.
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