As industries across all domains seek to advance sustainability goals, electric vehicles (EVs) will play a central role in decarbonizing transportation and mobility. Recent initiatives, including the Environmental Protection Agency’s (EPA) latest emissions regulations, have the potential to boost EV adoption by 56 percent and slash greenhouse gas emissions by 60 percent by 2030.

However, notable questions remain in this rapid transition in the automotive industry: can we make enough EV batteries? Can we secure a reliable and scalable supply chain for the critical materials essential to battery production? Can we sustainably electrify an industry and decarbonize all stages of the auto-mobility industry?

Rising demand for EVs and ramping battery production presents new, significant challenges. For instance, producing one ton of lithium – enough for about 100 car batteries – can require up to two million tons of water. Additionally, the U.S. Department of Energy found that less than five percent of lithium-ion batteries (LIB) were recycled in 2019. EVs, at their root, transition us from a transportation model that is inherently consumptive (ie. burning fossil fuel) to an inherently circular one where natural resources are only extracted once. But we’ll need a better way of recycling batteries to get there.

Enter Li Industries, a leading provider of advanced LIB recycling technologies. Its patented direct recycling process efficiently recycles all LIB types, yielding high-purity commercialgrade battery materials faster, more affordably, and with minimal environmental impact. Since its inception in 2017, Li Industries has addressed battery recycling challenges, helping to establish a circular economy in which efficient recycling processes are not just desirable but standard practice.

Myriad Ventures has been a steadfast supporter of Li Industries over the past few years. As an investor since their Series A, we continue to support their game-changing technology with participation in their recent $36 million Series B funding round. Li Industries’ direct recycling technology stands out as the only viable solution today for recycling lithium iron phosphate (LFP) batteries at scale.

This point can’t be over-emphasized. Approximately 40 percent of global EV battery production today is LFP, and that is expected to grow to over 50 percent next year. None of those batteries can be recycled economically with incumbent technologies. They now can with Li Industries.

A Unique Solution for A Significant Challenge

The Inflation Reduction Act signed into law in 2022 signifies a crucial advancement in clean energy and climate legislation in the U.S. However, it introduces added complexity for battery manufacturers. Effective 2024, the act stipulates that in order to benefit from meaningful tax incentives, 40 percent of critical minerals in EV batteries, including lithium, must originate from extraction or processing in the U.S. or countries with free trade agreements. This requirement escalates to 80 percent by the end of 2026, further driving the pull for a domesticated and circular battery material supply chain.

Li Industries is strategically positioned to leverage the burgeoning LIB recycling market, driven by the soaring demand for EV batteries. Projections indicate that by 2030, the market for manufacturing scrap alone will reach $9.22 billion, with significant growth anticipated in the LFP recycling segment. Despite the reported over-supply of EV battery recycling today, the LFP recycling market remains largely untapped, presenting a significant opportunity for Li Industries.

A Remarkable Team

Core to Li Industries’ success is its seasoned founding team. Dr. Zheng Li, co-founder and CEO, brings over 16 years of experience in pioneering battery design, manufacturing, and recycling technologies. The company also benefits from guidance from Nobel Prize Laureate Professor M. Stanley Whittingham and former CEO of Call2Recycle Carl Smith.

Ali Farhadi's recent appointment as Li Industries' COO marks another significant milestone. Farhadi’s decision to join Li Industries was shaped by his conviction towards the growing opportunity in directly recycling LFP chemistries, a space he is deeply familiar with. The collective expertise of Li Industries' team positions the company for continued innovation and leadership in this burgeoning industry.

Accelerating Next-Gen Cleantech Solutions

At Myriad, we are proud to back next-gen cleantech leaders who are developing sustainable and responsible solutions. We firmly believe that the future of business is clean and climate aware, and will be defined by the founders building towards a net-zero future. Startups like Li Industries play a vital role in laying the groundwork for global-scale decarbonization, addressing a substantial and growing market opportunity largely unaddressed by industry incumbents.