NEU Battery Materials, a Singapore-based material security company focused on recycling lithium iron phosphate (LFP) batteries, has announced the close of an oversubscribed US$7.6 million funding round. The investment was co-led by Shift4Good, a global venture capital platform investing in the decarbonization and resilience of transport and energy, and SGInnovate, a Singapore government-backed deep tech investor and ecosystem builder. The funding follows the commissioning of NEU's 1,300-ton-per-year Singapore factory and marks a significant step from technology development to industrial scale-up.
Funding Round and Investor Base
The round attracted new investors including Lotus Singapore Group and M7 Holdings, alongside existing backer Paragon Ventures I. Shift4Good and SGInnovate co-led the investment, reflecting strong confidence in NEU's industrial roadmap and recycling technology. The oversubscribed close signals growing investor demand for scalable solutions in the lithium battery supply chain.
Use of Funds and Operational Scale-Up
The new capital will support the ramp-up of battery-grade lithium production from LFP feedstock such as cathode production scraps and end-of-life black mass. It will also enable NEU to advance its international expansion as the company moves from technology development to industrial scale-up. This comes after the commissioning of a 1,300-ton-per-year factory in Singapore, a key milestone for the company's production capacity.
Market Demand for LFP Recycling
Global demand for LFP batteries continues to accelerate across electric vehicles and energy storage applications. According to the International Energy Agency, LFP accounts for over 90% of battery energy storage systems worldwide and over 55% of all EV batteries. As battery deployments and manufacturing continue to grow worldwide, scalable recycling solutions are becoming increasingly important for strengthening industrial sovereignty and securing critical lithium supply chains.
Differentiated Technology and Environmental Impact
NEU has developed the world's first patented electrochemical redox targeting technology designed specifically to close the loop on LFP batteries. The process is driven by electricity and water, and it uses regenerative chemicals that generate less waste and reduce environmental impact compared with conventional recycling methods. Emissions can be up to 83% lower than traditional hydrometallurgy and pyrometallurgy, while lithium recovery becomes more scalable, cost-efficient, and sustainable.
Leadership Perspectives
Bryan Oh, Co-founder and CEO of NEU Battery Materials, said the company aims to build cleaner and more resilient lithium supply chains. Sebastien Guillaud, Co-founder and Managing Partner at Shift4Good, described LFP recycling as a decarbonization and industrial sovereignty imperative, noting NEU's differentiated solution for battery-grade lithium. Hsien-Hui, Head of Investments at SGInnovate, added that NEU plays a strategic role in the battery value chain and SGInnovate remains committed to its growth.
Next Phase of Growth
With the new capital and its newly commissioned plant, NEU will focus on scaling production, further reducing production costs, and expanding its network of partners. The company's R&D roadmap has already delivered key technical milestones ahead of schedule, providing a strong foundation for international deployment and continued commercial growth. This next phase supports the rollout of NEU's modular LFP recycling technology, enabling the production of vital battery-grade lithium at progressively lower costs for customers.
NEU Battery Materials has moved from technology development to industrial scale-up with the closing of its latest funding round and the opening of its Singapore facility. The company's electrochemical recycling approach addresses both supply chain security and sustainability challenges within the fast-growing LFP battery market. Backed by new and existing investors, NEU is positioned to expand internationally while producing battery-grade lithium with lower emissions and cost efficiency.