Lithion Recycling Inc., a Canadian company offering solutions to recycle lithium-ion batteries, has closed the first part of its Series A funding round and is expecting to raise up to CAD 125 million (approximately USD 99 million) from IMM Investment Global Limited and Fondaction. Following the round, IMM Global will also join Lithion’s board of directors.

The funds will be used to support the company’s industrialization plan in Quebec, which includes the construction of three facilities: 1) its first commercial mechanical separation plant (capacity to process 7,500 metric tons per year), 2) a Technology Development Center (TDC) for R&D (create 100 jobs ); and 3) a hydrometallurgy plant (capacity level undisclosed). The expected operational dates of the plants were not disclosed.

The funding is stated to be a part of the company’s plan to invest USD 350 million over a five-year period to ramp up capacity and commercialize its battery recycling globally by signing licensing agreements. Lithion reports that it expects to sign its first contractual agreements in 2022.

Analyst Quicktake: Lithion Recycling is on the brink of commercialization. The company currently operates a demonstration pilot plant in Anjou and is developing the plant to sustain a capacity of 2,000 metric tonnes by 2023. The plans are a step towards achieving the company's aggressive target to deploy its technology globally, building 40 recycling plants by 2030.