Watercycle Technologies Secures £3M Grant to Recover Lithium for EV Batteries
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Watercycle Technologies Secures £3 Million Grant to Recover Lithium for EV Batteries

The UK government funding will help establish a domestic supply of battery-grade lithium from waste.

8/11/2026
Yassine Benadou
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Climate-tech innovator Watercycle Technologies has secured a significant £3 million grant from the UK government. This funding is earmarked for a larger £6 million project aimed at creating a demonstration-scale facility for lithium recovery. The initiative will extract and refine battery-grade lithium from waste streams, bolstering the UK's electric vehicle industry.


A Strategic Investment in the UK's Battery Supply Chain

The grant was awarded through the DRIVE35 Scale Up Fund, a key component of the government's broader £4 billion DRIVE35 programme. This initiative is delivered by the Department for Business, Innovation, Science and Trade in partnership with the Advanced Propulsion Centre UK (APC) and Innovate UK. Its purpose is to help promising technologies transition from development to commercial-scale manufacturing.

The project, named ReLiVE, is a 36-month undertaking scheduled to commence in April 2027. Watercycle Technologies will lead the effort to design, build, and operate the new pilot-to-demonstration scale production facility. The primary objective is to prove that battery-grade lithium can be produced reliably and competitively within the UK.

Harnessing Technology for a Circular Economy

At the core of this initiative is Watercycle's proprietary technology, which enables the recovery of critical minerals from unconventional sources. The system will process industrial wastewater and materials from battery recycling, which would otherwise be treated as waste. This approach transforms potential pollutants into a valuable resource for the green economy.

The recovered material will be refined into high-purity lithium salts, a crucial component for manufacturing electric vehicle batteries. To ensure market readiness, the project involves collaboration with UK partners across the lithium refining, battery, and automotive sectors. This partnership will validate that the produced lithium meets stringent industry requirements for use in cathodes and cells.

Addressing a Critical National Need

This project directly confronts a significant strategic challenge for the United Kingdom's industrial ambitions. The country currently has no major domestic lithium refining capacity and is heavily dependent on foreign imports. As demand for electric vehicles grows, securing a local supply of this critical mineral is paramount.

Dr. Ahmed Abdelkarim, co-founder of Watercycle Technologies, noted that the project supports the UK's Critical Minerals Strategy. He emphasized that demonstrating production from circular, low-carbon sources can help turn the government's ambition into reality. This initiative showcases how British innovation can build a more resilient battery supply chain.

The environmental and economic benefits extend beyond securing a lithium supply. The technology also offers a way to recover other valuable minerals that would be lost during wastewater treatment. This process simultaneously reduces the environmental impact of industrial disposal and creates a more traceable, lower-carbon supply chain.


This £3 million grant represents a pivotal moment for Watercycle Technologies and a strategic advancement for the UK's green industrial policy. The ReLiVE project is poised to demonstrate a viable, circular model for domestic lithium production, reducing import dependency. Ultimately, this initiative strengthens the nation's supply chain and solidifies its role in the future of sustainable transportation.