University of Manchester spinout firm Watercycle Technologies Ltd announced the closure of a $5.6 million Series A investment round led by Par Equity as part of a syndicate with Greater Manchester Combined Authority (GMCA), Aer Ventures and the University of Manchester Innovation Factory.
Watercycle said it is a climate-tech company pioneering “sustainable and circular critical mineral recovery essential for a Net Zero future, creating clean drinkable water in the process.”
It is initially focused on two areas critical to lithium production and creating a circular economy for the global energy transition, Direct Lithium Extraction and Crystallisation (DLEC) and the recycling of spent lithium-ion batteries and black mass (shredded batteries).
“This investment will enable Watercycle to rapidly scale up and commercially deploy its technology to deliver sustainable, low-cost, high-yield mineral recovery systems,” said the company.
“Watercycle’s mineral recovery systems have received international traction from government bodies and businesses on every continent.
“The goal of the company’s proprietary technology is twofold: mitigating the growing critical mineral supply risks and fostering a circular economy in which waste is converted into value.
“The company is looking to deploy its innovative solutions which will significantly impact the production of raw materials crucial for facilitating the green energy transition.”
Seb Leaper, co-founder and CEO of Watercycle, said: ”It’s fantastic to have backing from such an excellent syndicate of investors who are strategically positioned to help Watercycle rapidly scale. With the continued support of our initial backers, the University of Manchester and Aer Ventures along with new financial support provided by deep-tech veterans Par Equity and local champions, GMCA, Watercycle is in a stronger position than ever to deliver on its mission to provide the world with a sustainable supply of critical raw materials without which there is no sustainable future.’’
The investment round also attracted an Innovate UK Investor Partnership grant.
“We are excited to be taking the company forward to ton-scale production of battery-grade minerals,” said Ahmed Abdelkarim, co-founder and CTO.
“Our achievements to date are a testament to the dedication, brilliance and drive of our remarkable team.”
Elizabeth Young, Investment Manager at Par Equity, said: “There is an incredible wealth of talent and innovation emerging from universities in the North of the UK, with Watercycle Technologies serving as a prime example from the University of Manchester. We’re proud to support WT’s growth through investment and by connecting the business with experts from our network.
“This mission-critical sector is vital for the UK as we work on addressing global challenges, particularly in securing essential mineral and water infrastructure. By supporting foundational technologies like Watercycle, we strengthen the UK’s innovative ecosystem and pave the way for the climate solutions of tomorrow.
“WT is a perfect illustration of the talent in the North, and we hope to see this success inspire a new generation of startups in the region.”
Mayor of Greater Manchester Andy Burnham said: “This investment is a great example of how we’re supporting local innovation to strengthen Greater Manchester’s position as a leader in the low-carbon economy. It’s also about creating skilled jobs and building a greener, more sustainable future for Greater Manchester. Our investment in homegrown businesses like Watercycle Technologies reflects our commitment to becoming a cleaner and more prosperous city-region.”
Paul Dudley, Managing Partner of Aer Ventures, said: “We are delighted to have played a role in supporting Watercycle over the past couple of years. In this time the business has developed its cutting-edge technologies rapidly and can now provide important solutions to a range of customers in the Critical Metals sector. Today we welcome new investors to help develop Watercycle further and look forward to continuing on-going success in the future.”
Roisin McCallion, Business Development & Investment Director for the University of Manchester Innovation Factory, said: “We are delighted to continue supporting Watercycle Technologies on their journey to revolutionise sustainable mineral recovery.
“This Series A investment marks a significant milestone, not only for the Watercycle Technologies team, but also for The University of Manchester’s wider mission to drive impactful innovation.
“Their pioneering technology has the potential to make a profound contribution to addressing critical mineral supply challenges and advancing the international transition to green energy. We look forward to seeing the company scale its solutions globally and make a lasting impact on the circular economy.”