Funding a UK recycling first
Find out how we have worked with the UK’s first industrial-scale recycler of lithium-ion batteries to fund their expansion
Introduction
LiBatt Recycling Ltd is the UK’s first industrial-scale recycler of lithium-ion batteries, dedicated to advancing a market leading circular economy solution for battery materials. With the boom in lithium-ion battery use for electric vehicles, consumer electronics and energy storage, the business is supporting an urgent recycling need in the UK.
Funding the Vision
Since its founding in Wolverhampton in 2021, LiBatt has grown rapidly, creating demand for major investment in new technology to boost throughput. Seeing the sector’s critical role in decarbonisation and LiBatt’s ambitious trajectory, Daniele Manzi, Head of Sales for ESG Lending at Close Brothers Asset Finance, met with the team to explore partnership opportunities.
The ESG Lending team worked closely with the team at LiBatt for over a year to deeply understand their operating model, their progress against planned milestones and their long-term growth plans. When the business began looking at funding, after considering various options, Daniele suggested a Sale and HP back agreement as an appropriate solution for their requirements.
Sale and HP back is a type of refinancing where a business sells their equipment to us and we lend the money needed for investment back to them. The repayments are made in line with what the equipment is earning for them, and when the agreement is done, they own the equipment again.
Impact and ambition
With the finance agreement in place, LiBatt have gone from strength to strength and are already looking into further expansion. The new facility has increased the UK’s recycling capacity, diverted batteries from landfill, and recovered key materials for further manufacturing.
Testimonials
Daniele Manzi, Head of Sales for ESG Lending at Close Brothers Asset Finance, said: “Working with Robin and Alex at LiBatt has been a pleasure. Their leadership in lithium-ion battery recycling is genuinely inspiring, and I’m excited to see the next phase take shape. Backing businesses like LiBatt reflects Close Brothers’ commitment to ESG lending that helps UK SMEs progress on the journey to net zero.“
Robin Brundle, Executive Chairman and Co-Founder of LiBatt Recycling, added: “We’re delighted to be working with Close Brothers. I think the thing that has impressed us the most is their foresight. They can see the journey that we are on. Daniele and the team have visited the site several times and we have built a great relationship that should continue in the future as we accelerate sustainability in the UK battery sector.”
The availability of lending, products and services are subject to eligibility, status and our lending criteria. The right to decline any application is reserved, terms and conditions apply.
