Turning Steel Waste into Battery Power to Reduce Import Reliance
Haarlem, Friday, 9 October 2026.
Dutch startup Phoenix Metals secured €4 million to extract vanadium from steel slag. This innovative recycling process could meet one-third of Europe’s import demand for critical battery materials.
A Circular Solution to Europe’s Resource Dependency
To scale its breakthrough technology, the Dutch deeptech startup Phoenix Metals, co-founded by Gijsbert Bakker and Stijn van Zelst, has secured €4 million in seed funding [1][3][4]. This investment round, backed by regional development agency ROM InWest, InnovationQuarter, and Mossinkoff Investments, is earmarked for constructing a state-of-the-art pilot plant in IJmuiden, Netherlands [3][4]. This fresh capital builds upon more than €5 million in prior R&D subsidies and funding received from the European Just Transition Fund, the provinces of Noord-Holland and Zuid-Holland, Kansen voor West, and the Rijksdienst voor Ondernemend Nederland (RVO) [3][4]. By establishing its operations in the IJmond region of North Holland, Phoenix Metals leverages a strategic industrial hub characterized by extensive chemical expertise, logistics infrastructure, and close proximity to major steel production [1].
Extracting Critical Materials below 100 Degrees Celsius
The core of Phoenix Metals’ innovation lies in a proprietary hydrometallurgical process that operates at temperatures strictly below 100 °C [3][4]. This low-temperature chemical method allows the clean extraction of valuable components from steel slag—an industrial byproduct traditionally relegated to low-value construction backfill [1][3]. The process simultaneously recovers vanadium, iron, manganese, magnesium, and carbon-free calcium, aiming to recycle approximately 80 percent of the processed slag [3]. By avoiding combustion, the chemical process remains scope 1 emission-free, utilizing only electricity [3]. This represents a significant environmental improvement over traditional calcium extraction, which relies on burning limestone and releasing carbon dioxide [3].
Mitigating Grid Congestion with Flow Batteries
The primary target for the recovered vanadium is the production of high-purity electrolyte for vanadium-flow batteries, which are ideal for stationary energy storage [1][4]. Unlike dominant lithium-ion technologies used in mobile applications, vanadium-flow batteries are non-flammable, offer an exceptionally long operational lifespan, and are completely recyclable [1]. These characteristics make them highly attractive for securing power grids, industrial clusters, and data centers [1]. Such localized storage solutions are increasingly critical in North Holland, which is currently one of the hardest-hit regions in Europe regarding grid congestion (netcongestie) due to surging electricity demand from electric vehicles, heat pumps, and expanding data centers [2].
Disrupting the Global Supply Chain
Currently, Europe is heavily dependent on foreign energy materials, importing roughly 95 percent of its vanadium from countries like China [1][4]. However, the European steel industry generates 16 million tonnes of steel slag annually, with Tata Steel Nederland alone producing 650,000 tonnes per year [3]. Phoenix Metals estimates that the vanadium contained within Tata Steel’s Dutch slag could theoretically meet about one-third of Europe’s current import demand, translating to approximately 5,000 to 6,000 tonnes of vanadium [3][4]. Extracting these materials locally not only enhances Europe’s strategic autonomy but also offers a safer alternative to burying steel slag underground, a practice facing intense government scrutiny and potential bans from the Dutch Ministry of Infrastructure and Water Management due to soil and water contamination risks [3].
Scaling Up to Commercial Viability
The newly funded pilot plant in IJmuiden is designed to process 500 tonnes of steel slag per year to validate the hydrometallurgical technology on an industrial scale [3][4]. Developed in partnership with Tata Steel Nederland, the pilot installation is scheduled to begin production in the first half of 2027 [4]. If the pilot successfully demonstrates reliable large-scale recovery, Phoenix Metals plans to initiate a Series A funding round to construct a commercial-scale plant in 2028 [3][4]. This commercial facility is targeted to become operational by 2031 with an initial processing capacity of 100,000 tonnes of slag per year, before eventually scaling up to 1 million tonnes annually [3]—representing a capacity expansion of 10 times its initial commercial footprint.
Accelerating Regional Green Chemistry
To navigate the complexities of scaling up a capital-intensive hardware business, Phoenix Metals is actively participating in the 2026 Green Chemistry Accelerator (GCA) program [3]. This initiative, organized by Groene Chemie Nieuwe Economie (GCNE), Invest-NL, and regional development agencies, provides the startup with a structured 200-day development plan to refine its investment communication and operational strategy [3]. The government’s interest in the venture remains high, highlighted by a recent visit from State Secretary for Infrastructure and Water Management Annet Bertram, who praised the company as an inspiring example of circular innovation in the modern metallurgical industry [3].