Copenhagen-based Nordic Salt Cycle has raised €3.5 million in pre-seed funding to develop a modular molten-salt platform that aims to extract lithium, cobalt, and rare earth elements from waste streams, promising lower energy use and improved economics compared to existing methods.
Copenhagen-based Nordic Salt Cycle has raised €3.5 million in a pre-seed round to advance a molten-salt process aimed at recovering critical minerals from end-of-life products, the company and investors said. According to the report by bebeeZ, the round was led by Danmarks Eksport- og Investeringsfond (EIFO) and included existing backer The Footprint Firm and Germany’s Ananda Impact Ventures. Danish reporting put the sum at DKK 26 million.
Founded in 2024, Nordic Salt Cycle is developing a modular molten-salt platform it says can separate and extract lithium, cobalt and rare earth elements from complex waste streams such as electric vehicle batteries, wind turbines and electronics. The company claims the approach operates with lower energy input and fewer chemicals than incumbent recycling technologies and could offer improved unit economics versus large-scale processing hubs in Asia. “Our technology platform has the potential to be a game-changer in the recovery of critical materials such as lithium and rare earth elements, and we are thrilled to announce this round of funding together with our new and current investors,” Stefan Vilner, CEO and co-founder of Nordic Salt Cycle, said in a statement to bebeeZ.
The new capital will be used to further develop and test a prototype system, run pilot projects beginning with EV batteries, and assess applications for other end-of-life material streams, the company said. “Our prototype is up and running, and we have demonstrated that our molten salt technology can separate and extract materials much more effectively than current technologies, using very little energy and significantly fewer chemicals, resulting in unique unit economics,” added James Amphlett, CTO of Nordic Salt Cycle.
The Nordic Salt Cycle team.
EIFO framed its investment as consistent with a mandate to support technologies that bolster European sustainability and industrial resilience. “The investment in Nordic Salt Cycle is directly aligned with EIFO’s strategy of investing in groundbreaking deep-tech companies that enable a more resilient and sustainable economy. We believe Nordic Salt Cycle’s platform can play a pivotal role in strengthening Europe’s capabilities in recycling and recovering critical minerals at lower cost and with reduced energy consumption,” Axel Bjørum, Senior Investment Associate at EIFO, said in an EIFO news release.
Investors highlighted the strategic context: Europe is working to reduce reliance on imported critical raw materials as electrification and renewable-energy deployment accelerate. “The green transition depends on critical materials – Nordic Salt Cycle’s breakthrough technology unlocks end-of-life batteries as a key resource for securing them. While incumbent recovery technologies are either energy-intensive or expensive, Nordic Salt Cycle’s molten salt process recovers critical materials, like lithium, in a circular, sustainable and low-cost way. We’re excited by how far the team has progressed already in its first year and are proud to continue backing their rapid scale-up,” Phil Doolan, Partner at The Footprint Firm, said in the company release. Bernd Klosterkemper, Partner at Ananda Impact Ventures, added that the startup “stood out in our research as a platform technology with the potential to transform an entire industry.”
Independent coverage and the company’s own website describe the technology as modular and intended for deployment across multiple waste streams; reporting in ImpactLoop, Tech.eu and StartupResearcher echoed the funding details and the planned EV-battery pilot as the initial commercial focus. EIFO’s public statement specifically noted the investment targets recovery from electric vehicle batteries.
While early testing and investor statements stress lower energy consumption and reduced chemical use, Nordic Salt Cycle’s claims have not yet been independently validated at commercial scale. Industry data and analysts cited in broader reporting show Europe’s recycling ecosystem is rapidly expanding but that scale, feedstock consistency and certification of secondary material quality remain hurdles for emerging processes. The company will need to demonstrate reproducible yields, lifecycle emissions benefits and cost-competitiveness through pilot and commercial deployments before its technology can materially alter supply chains for lithium, cobalt and rare earths.
Nordic Salt Cycle joins a growing cohort of European startups pursuing circular solutions for critical minerals, a space that policymakers and industry actors increasingly view as strategic to the continent’s energy transition. The new funding is intended to accelerate prototype refinement, partner trials with battery recyclers and automotive players, and technical validation across further material streams.
