Manchester-based climate tech company Watercycle Technologies has secured a £1 million government grant to advance CAMCYCLE, a project designed to streamline lithium-ion battery recycling and strengthen the UK's electric vehicle (EV) supply chain.
Delivered in partnership with the Centre for Process Innovation (CPI), the 12-month initiative aims to recover valuable battery materials more efficiently and convert them directly into cathode active material (CAM), a key component used in EV batteries.
The funding was awarded through the DRIVE35 Innovation Fund Demonstrate 2 competition, part of the UK Government's £4 billion DRIVE35 programme, delivered by the Department for Business and Trade in partnership with the Advanced Propulsion Centre UK (APC).
A faster route to battery materials
Through its £2 million CAMCYCLE project, Watercycle Technologies has developed a process that simplifies lithium-ion battery changing.
Traditional battery recycling involves separating batteries into individual minerals before processing them through multiple manufacturing stages. Watercycle Technologies says its approach removes at least three of these steps, combining battery recycling and CAM production into a single operation.
The company is also recovering valuable minerals from wastewater generated during the recycling process, enabling resources from both spent batteries and recycling by-products to be reused.
Supporting the UK's battery supply chain
Cathode active material is one of the most important components in lithium-ion battery manufacturing, yet the UK currently lacks domestic CAM production capacity. As a result, many battery materials are exported for processing before re-entering the supply chain.
Watercycle Technologies believes local CAM production could help retain critical minerals such as lithium, reduce reliance on overseas suppliers and support UK automotive manufacturing.
Dr Ahmed Abdelkarim, co-founder and chief scientific officer of Watercycle Technologies, emphasised how this project can boost the UK's "industrial resilience" by retaining the minerals and not buying them back for more from international dealers.
If successful, CAMCYCLE could support the growth of the UK's EV sector while contributing to wider net-zero goals through more sustainable battery recycling and manufacturing.
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