cylib secures €63,4M grant funding to build LFP battery recycling facility
The Dormagen facility will start operations in 2027
and broaden its scope to strengthen Europe’s battery independence
Aachen/Dormagen, 19 December 2025 – German battery recycling company cylib has secured a €63.4 million grant from the German Federal Ministry for Economic Affairs and Energy (BMWE) to finance the second build-out stage of its Dormagen facility. The funding, awarded through the STARK program, will enable cylib to establish Europe’s first dedicated industrial-scale LFP (Lithium Iron Phosphate) recycling line, doubling total planned facility capacity to 60,000 tonnes annually—equivalent to 140,000 electric vehicle batteries.
Founded in Aachen in 2022, cylib has rapidly scaled from laboratory development to proven pilot-scale operations and now employs a team of 120 people preparing the industrialisation at Chempark Dormagen, with start of production planned for 2027. To date, cylib has secured over €140 million in funding through non-dilutive grants and Series A equity financing, demonstrating strong public and private sector confidence in its technology and market position.
The expansion positions cylib as Europe’s first industrial operator capable of processing all major battery chemistries—NMC (Nickel Manganese Cobalt) and LFP—from end-of-life batteries, production scrap, and black mass at scale. This comprehensive capability directly addresses Europe’s critical dependency on imported battery raw materials, particularly from China, while responding to rapidly shifting market dynamics. LFP batteries now account for nearly 50% of the global EV battery market and dominate stationary energy storage systems, yet Europe currently lacks dedicated industrial-scale LFP recycling infrastructure—creating both astrategic vulnerability and a significant market opportunity for domestic material recovery.
Dr. Lilian Schwich, co-founder and co-CEO of cylib, says:
This grant sends a strong signal that Germany is committed to investing in Europe’s circular economy and raw material resilience,
“We are grateful for this support, which validates our approach and enables us to deliver the LFP recycling infrastructure Europe urgently needs.”
Closing Europe’s LFP recycling gap
The €63.4 million grant will finance a dedicated 30,000-tonne LFP recycling line to complement the facility’s planned 30,000-tonne NMC capacity. While European recycling efforts have historically focused on high-value NMC chemistries, LFP batteries are rapidly gaining market share.
Dr. Gideon Schwich, co-founder and co-CEO, says:
Our pilot projects with partners across Europe delivered a clear message: LFP recycling capacity is needed now,
“The grant supports our move from pilot success to fullscale industrial operations. A key step towards a resilient European battery value chain.”
Strengthening structural transformation in North Rhine-Westphalia
The STARK-funded (Stärkung der Transformationsdynamik und Aufbruch in den Revieren und an den Kohlekraftwerkstandorten) expansion advances multiple transformation objectives for the Rhineland coal region:
Regional economic development: Creating additional 180 jobs in a structurally transitioning region
Technology leadership: Establishing industrial-scale LFP recycling capabilities new to Europe
Enhanced recovery rates: Achieving 90% material recovery for LFP and NMC battery chemistries, applying a lithium first approach.
Climate impact: Reducing greenhouse gas emissions by 80% versus primary extraction
Supply chain resilience: Building partnerships across the complete battery value chain
The Dormagen facility will operate with closed-loop water systems and minimal waste generation while ensuring full EU Battery Regulation compliance. Production begins in 2027, with capacity ramping up in subsequent phases.
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cylib secures €63,4M grant funding to build LFP battery recycling facility, source
