Altilium EV battery recycling expansion gains UK DRIVE35 funding support

Securing a major boost for domestic battery recycling, Altilium has received GBP 18.5 million from the UK government’s DRIVE35 Scale-Up Fund to accelerate its next-phase infrastructure rollout. The funding will be used to develop the ACT3 recycling facility in Plymouth, Devon, marking a critical step toward strengthening the country’s circular EV battery ecosystem. The project aligns with broader government regulations and sustainability targets while supporting localized supply chains for critical battery materials.

ACT3 facility to strengthen EV battery recycling capacity

The ACT3 plant is designed to process up to 24,000 electric vehicle batteries annually, converting them into high-value materials such as nickel mixed hydroxide precipitate (MHP), lithium sulphate, and graphite. This facility represents a strategic advancement in charging energy infrastructure and battery lifecycle management, ensuring that valuable raw materials are recovered and reused efficiently. By integrating advanced recycling processes, Altilium aims to reduce dependency on imported resources and enhance domestic material security.

Production output and material recovery details

The expected annual output from the ACT3 plant highlights its industrial scale and efficiency in material recovery. These outputs are crucial for supporting battery manufacturing and reinforcing supply chain resilience across the EV ecosystem. The recovered materials will directly contribute to cathode production and battery reuse applications, improving overall sustainability metrics within the automotive sector.

Project timeline and economic impact

Construction of the ACT3 plant is scheduled to begin in summer 2026, with commissioning targeted for the end of 2027. The development is expected to generate around 70 skilled jobs in Plymouth, contributing to regional economic growth and reinforcing the UK’s position in manufacturing production. This initiative demonstrates how strategic investments can simultaneously drive sustainability and industrial development within the EV sector.

Foundation for large-scale ACT4 expansion

Beyond ACT3, this project lays the groundwork for Altilium’s upcoming ACT4 facility in Teesside, which will significantly scale recycling operations. ACT4 is planned to process up to 150,000 EV batteries annually and produce approximately 30,000 tonnes of cathode active materials (CAM). This expansion reflects a long-term vision to establish a closed-loop battery ecosystem in the UK, ensuring continuous material recovery and reducing environmental impact across vehicle lifecycles.

Frequently Asked Questions

What is the purpose of Altilium’s ACT3 recycling facility?
The ACT3 facility is designed to process used EV batteries and recover valuable materials like lithium, nickel, and graphite for reuse. This helps reduce reliance on raw material mining while supporting a circular battery economy. By recovering these materials efficiently, the facility strengthens supply chain resilience and promotes sustainable manufacturing. It also plays a key role in reducing environmental impact and enabling large-scale EV adoption through improved battery lifecycle management.

How does the DRIVE35 funding support EV battery recycling in the UK?
The DRIVE35 Scale-Up Fund provides financial support to accelerate advanced automotive and clean energy projects across the UK. In this case, it enables Altilium to build a high-capacity recycling facility, boosting domestic processing capabilities. This funding encourages innovation, strengthens industrial infrastructure, and supports job creation. It also aligns with national goals to develop sustainable energy systems and reduce dependence on imported critical materials.