SQM and Marubeni have committed financial backing to UK-based battery recycler Altilium as the company advances plans to scale its hydrometallurgical processing capacity, according to a story published by The EV Report.

The partnership brings together a Chilean lithium major and one of Japan's largest general trading houses around a UK recycler seeking to lock in feedstock supply and offtake agreements ahead of EU recycled-content deadlines taking effect later this decade.

What does the deal change for Altilium?

The backing positions Altilium to move from pilot-scale demonstration toward commercial throughput. The EV Report headline does not disclose the size of the commitment, the equity stake, or the named capacity targets tied to the partnership. Those details will dictate whether the transaction marks Altilium's transition to industrial-scale hydrometallurgical operations or simply strengthens its balance sheet ahead of further fundraising.

Altilium has built its process around recovery of lithium, cobalt, nickel, and manganese from end-of-life EV battery packs and gigafactory production scrap, with the stated objective of returning battery-grade salts to cell manufacturers. The company has previously announced memoranda of understanding with UK and European cell makers and automotive groups as it works to secure feedstock supply and customer offtake for a planned commercial facility in the UK.

Why are SQM and Marubeni involved?

SQM, listed on the Santiago and New York stock exchanges, operates a major lithium brine operation at the Salar de Atacama in Chile, producing lithium carbonate and lithium hydroxide for global battery and chemicals customers. Its downstream recycling activity has been limited to date; an Altilium partnership offers the Chilean producer a route to closed-loop, battery-grade lithium chemicals without the capital commitment of a standalone hydrometallurgical build-out.

Marubeni, one of Japan's general trading houses, has expanded its battery materials portfolio in recent years, with positions spanning cathode materials, cell manufacturing services, and end-of-life processing. Its participation in Altilium extends that footprint into the UK and adds hydrometallurgical capability to a portfolio that has historically relied on pyrometallurgical partnerships in other regions.

For the broader battery recycling sector, the deal adds a second Asian strategic backer to a European recycler in a short period, reflecting how upstream miners and commodity traders are moving downstream to secure recycled feedstock ahead of regulation-driven demand. Altilium's hydrometallurgical route competes against pyrometallurgical processing favoured by operators including Glencore and Redwood Materials, with the choice of process determining recovery rates for lithium in particular.

What comes next?

The next milestones to watch are disclosure of deal economics — investment size, equity stake, and any commissioning schedule — and confirmation of the black mass or end-of-life pack volume the partners intend to route through the planned facility.

Against that, the EU Battery Regulation sets the compliance clock. The regulation requires rising minimum shares of recycled cobalt, lead, lithium, and nickel in new batteries placed on the EU market, with full targets taking effect from 2031. UK and European cell manufacturers that cannot secure recycled feedstock at industrial scale face compliance exposure later this decade, which sets the demand floor against which Altilium's scale-up will be measured.