Watercycle Technologies secures £3m from DRIVE35 Scale Up Fund and Innovate UK
This article covers Watercycle Technologies, a greentech startup that has secured £3m in government grant funding in a seed funding round towards a £6m project called ReLiVE to demonstrate domestic production of battery-grade lithium from waste streams, with work due to begin in April 2027. The 36-month ReLiVE programme aims to deploy the startup's DLEC™ direct lithium extraction technology at pilot-to-demonstration scale to recover battery-grade lithium salts for cathode and cell manufacture, supporting UK battery manufacturers and efforts to build domestic lithium refining capacity.
Watercycle Technologies, a greentech startup, has secured £3m in government grant funding in a seed funding round towards a £6m project to demonstrate domestic production of battery‑grade lithium from waste streams. The 36‑month programme, named ReLiVE, aims to deploy the company’s DLEC™ direct lithium extraction technology at pilot‑to‑demonstration scale and begin in April 2027.
Why it matters
Lithium is identified by the UK Government as a critical mineral for batteries and electric vehicles. The country currently lacks significant domestic refining capacity and relies on imported lithium chemicals, leaving manufacturers exposed to supply chain and carbon‑intensity risks. ReLiVE proposes a circular route that could both treat wastewater and recover high‑purity lithium salts suitable for cathode and cell manufacture, potentially reducing import dependence and the carbon footprint associated with long supply chains.
Inside the product
ReLiVE will design, build and operate a pilot‑to‑demonstration facility using Watercycle’s DLEC™ technology. The process targets lithium present in industrial wastewater and lithium‑bearing material from battery recycling streams. The recovered material will be refined into battery‑grade lithium salts intended to meet the strict purity requirements for cathode manufacture and cell production.
The project bundles recovery and refining steps into one demonstration, with environmental and economic assessments built in to quantify emissions savings, wastewater treatment benefits and the prospects for modular deployment that could be replicated across UK industrial sites.
Who are the investors?
The £3m award comes from the UK Government through the DRIVE35 Scale Up Fund, part of the wider £4bn DRIVE35 programme. The fund is delivered by the Department for Business, Innovation, Science and Trade in partnership with the Advanced Propulsion Centre UK and Innovate UK. The grant covers roughly half of the £6m ReLiVE budget; the remainder will be provided through project partners and co‑funding.
The funding rationale emphasises the Government’s Critical Minerals Strategy and the objective to establish UK lithium production capacity. Project partners will include organisations across the UK lithium refining, battery and automotive sectors to ensure the material produced meets industry specifications and can be integrated into existing cathode and cell supply chains.
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Founder perspective
Dr Ahmed Abdelkarim, Co‑founder and CSO at Watercycle Technologies, said:
ReLiVE directly supports the UK’s ambition to build a secure, domestic supply of battery-grade lithium. The Government’s Critical Minerals Strategy sets a clear goal to establish large-scale UK lithium production and reduce our reliance on imports.
By demonstrating that high-purity lithium can be produced from circular, low-carbon sources here in the UK, ReLiVE can help turn that ambition into reality. It shows how British innovation can support the transition to zero-emission transport while building the strategic capabilities the country needs for a more resilient battery supply chain.
The company describes ReLiVE as a step toward scaling DLEC™ from pilot operations to commercial production, testing whether circular‑source lithium can be produced reliably and competitively at demonstration scale.
The bigger picture
ReLiVE sits at the intersection of wastewater treatment, resource recovery and battery supply chain localisation. If the demonstration proves the concept and economics, modular facilities could offer manufacturers an alternative to imported lithium salts and a route to lower‑carbon battery materials.
The project also signals how government support is being channelled into greentech projects that prioritise both emissions reductions and industrial resilience. Outcomes from ReLiVE will be watched by manufacturers, policymakers and potential private investors as the UK seeks to develop a domestic battery‑grade minerals ecosystem that can compete with established international suppliers.
They've invested in Watercycle Technologies
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