NEU Battery Materials, a lithium-ion battery recycling startup, has raised $7.6 million in an oversubscribed funding round to scale its lithium iron phosphate (LFP) battery recycling operations and support international expansion.

The funding round was co-led by Shift4Good, a venture capital platform focused on decarbonizing transport and energy, and SGInnovate, a Singapore government-backed investor in deep technology companies. New investors Lotus Singapore Group and M7 Holdings participated in the round, along with existing investor Paragon Ventures I.

The funding follows the commissioning of NEU’s 1,300-ton-per-year battery recycling facility in Singapore.

NEU plans to use the proceeds to increase the production of battery-grade lithium from LFP feedstock, including cathode manufacturing scrap and black mass recovered from end-of-life batteries. The company also plans to reduce production costs, expand its network of partners, and pursue international expansion.

“Our vision is to build cleaner and more resilient lithium supply chains for the ongoing energy transition,” said Bryan Oh, Co-founder and CEO of NEU Battery Materials. “The commissioning of our Singapore plant is an important milestone in that journey. The funding will catalyze the scale-up and deployment of our modular LFP recycling technology, enabling us to expand the production of vital battery-grade lithium, and at progressively lower costs to our customers.”

NEU has said it will develop the world’s first patented electrochemical redox targeting technology designed specifically to close the loop on LFP batteries, making lithium recovery scalable, cost-efficient and more sustainable. Its process is driven by electricity and water, and uses regenerative chemicals, generating less waste and reducing environmental impact compared with conventional recycling methods such as hydrometallurgy and pyrometallurgy, with emissions up to 83% lower.

In April 2026, Renewable Metals, an Australia-based lithium-ion battery recycling company, secured AU$12 million (~$8.6 million) in an oversubscribed Series A funding round. The funding increased from an initial AU$8 million (~$5.7 million) target, bringing the company’s total funding to over AU$38 million (~$27 million) since inception.

According to Mercom’s 1H 2026 Funding and M&A for Energy Storage report, VC funding for energy storage companies in 1H 2026 totaled $1.6 billion across 51 deals, representing a 6% YoY decline compared to the $1.7 billion raised across 36 deals in 1H 2025.