cylib receives 63.4 million euros in funding for LFP battery recycling plant

The Aachen-based battery recycling company cylib has received funding of 63.4 million euros from the German Federal Ministry for Economic Affairs and Energy (BMWE). The funding will be used to finance the second expansion stage of the recycling plant at Chempark Dormagen. Europe's first dedicated recycling line for lithium iron phosphate (LFP) batteries on an industrial scale is to go into operation there from 2027.

Doubling capacity to 60,000 tons per year

The expansion will enable cylib to double the planned total capacity of the site to 60,000 tons of battery material per year. This corresponds to around 140,000 electric vehicle batteries. The new LFP line complements the already planned NMC recycling capacity (nickel-manganese-cobalt) of 30,000 tons per year.

Strategic importance for Europe's raw material security

With the expansion, cylib is positioning itself as the first European company that can recycle all relevant battery chemistries (NMC and LFP) on an industrial scale. This addresses Europe's high dependence on imported raw materials, particularly from China. LFP batteries now account for around 50 percent of the global electric vehicle battery market and also dominate stationary energy storage systems, but until now Europe has lacked a specialized recycling infrastructure for this cell chemistry.

From pilot plant to industrial scale-up

cylib was founded in Aachen in 2022 and has been successfully operating a pilot plant since 2023, which also serves as a research and development center. The company now employs over 120 people. Production at the industrial plant in Dormagen is scheduled to start in 2027, with capacity being expanded in stages. To date, cylib has raised more than 140 million euros in equity (Series A) and funding.

STARK funding strengthens structural change in the Rhenish mining area

The funding is part of the STARK program, which supports structural change in former coal-mining regions. Around 180 additional new jobs are to be created in Dormagen. The plant is designed for closed water cycles, minimal waste streams and full compliance with EU battery regulations.

High recycling efficiency and climate impact

cylib takes a lithium-first approach and aims to achieve a material recovery rate of over 90% for LFP and NMC batteries. The recovered raw materials are reintroduced into the battery supply chain with a carbon footprint that is up to 80 percent lower than that of primary extraction. The company is thus making a contribution to the circular economy, reducing emissions and strengthening resilient European supply chains.