M&As: SQM invests US$9.4 mn in UK EV battery recycling firm Altilium; LyondellBasell acquires recycling assets in California

SQM Lithium Ventures has invested US$9.4 million in UK electric vehicle battery recycler Altilium to help the company scale up its operations.

The corporate venture arm of Sociedad Quimica y Minera de Chile's (SQM) SQMA.SN lithium business provided most of the US$12 million Series A funding round for Altilium, following a US$2.6 million investment by SQM, the world's second-largest lithium producer, in the start-up last year.

"The investment in Altilium allows SQM to get ahead of the global recycling curve," David Rousselle, SQM's engineering manager and a member of Altilium's board, said in a statement.

The rise in EVs has brought with it a race to recycle the valuable minerals in their batteries - primarily lithium, cobalt and nickel - which can be worth thousands of euros per car, and counter China's dominance of this field.

Altilium is one of a number of firms gearing up its recycling business in Europe, where today most EV batteries are shredded into 'black mass' that is shipped to China for processing.

The latest funding will help Altilium open a plant in England in 2024 to process cathode materials for automakers, recycling stations to turn battery cells into black mass, and a plant in eastern Europe to turn black mass into battery materials later in 2024.

In other news, chemical firm LyondellBasell has announced it has acquired mechanical recycling assets and properties containing rigid plastics recycling processing lines from PreZero, a US recycling/waste management service provider. The transaction includes leasing the processing facility in Jurupa Valley, California, which has a production capacity of approximately 50 million pounds/year for recycled materials.

"This acquisition further strengthens our U.S. presence and will deliver value for our customers and plastic recycling rates in the West Coast," said Yvonne van der Laan, LyondellBasell executive vice president, Circular and Low Carbon Solutions. "We will build upon our existing experience in plastic recycling in Europe and deliver a state-of-the-art, mechanical recycling facility to meet growing demand for recycled products in the US."

LYB plans to operate its newly-acquired mechanical recycling plant in California to manufacture post-consumer recycled resins using plastic waste feedstock. LYB will offer these recycled polymers under its CirculenRecover brand, part of the company's Circulen portfolio of products that enable the circular economy. LYB expects to commence operations at its new facility in 2025.

The transaction supports the company's efforts to build a circular economy for plastic, help end plastic waste in the environment and meet customers' growing demand for sustainable products.

Together with the previously announced equity stake in the Cyclyx joint venture and investment in the Cyclyx Circularity Centre in Houston, this latest California-based transaction will further enhance the competitiveness of LYB in the US. recycled products market, it adds.

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