Watercycle Technologies Secures US$5.6mn For MENA Expansion

Watercycle Technologies, a UK-based company specializing in sustainable mineral recovery, has closed a $5.6 million Series A investment round to expand into the Middle East and North Africa (MENA).

The round was led by Edinburgh-headquartered Par Equity, with participation from Greater Manchester Combined Authority (GMCA), Aer Ventures, and the University of Manchester Innovation Factory.  

The funding will enable Watercycle to scale and deploy its technology, which provides low-cost, high-yield mineral recovery systems. The company’s solutions address critical mineral supply challenges, with applications in brine mining (recovering minerals from brine produced during desalination) and battery recycling, which support a circular economy by converting waste into valuable resources. 

Founded in 2020 by Ahmed Abdelkarim and Sebastian “Seb” Leaper as a spin-off from the University of Manchester, Watercycle Technologies has advanced from its experimental stage to operating a pilot-scale system, producing over 100 kilograms of battery-grade lithium carbonate. The company has been supported through equity investments and competitive grants, including an Innovate UK Investor Partnership grant. 

Abdelkarim, an Egyptian scientist and entrepreneur, has been instrumental in the company's growth, contributing to 12 patent applications and securing over $8 million in funding. 

With the new funding, Watercycle plans to further develop its products, strengthen commercial partnerships, and expand its team. Watercycle is also in discussions with entities in the MENA region to apply its technology to seawater desalination projects, Abdelkarim noted in a statement. The company’s focus is on addressing brine disposal by recovering minerals from brine and supplying them to various industries. 

In an interview with Inc. Arabia, CEO Leaper shared insights on the company's plans for growth in the region, its approach to brine mining, and how it aligns with regional sustainability objectives. 

“The extensive and rapidly growing desalination capacity of the MENA region represents both a risk and an opportunity," Leaper said. "Right now, brine production from desalination plants is a liability. Our technology turns it into an asset, not only enabling the production of more water but also the supply of useful minerals that can be utilized by energy-consuming industries like construction, pharmaceuticals, and metallurgy. Linking these industries, Watercycle believes, is key to creating a sustainable economy." 

Leaper also spoke about the challenges and resources that are unique to the MENA region, which may require Watercycle to adapt its technology. “Desalination is about extremely high throughput, and so, our technology is scaling up to match these requirements," Leaper explained. "We also will be adapting to the local climate, taking advantage of the abundant solar resources of the MENA region."

Although Leaper didn't disclose which countries the company will expand to, when asked about the potential impact of Watercycle's brine mining technology in Saudi Arabia (which accounts for a significant portion of the world’s desalination capacity), he noted that it could support the Kingdom's broader economic and sustainability goals. “Saudi's efforts to diversify its economy towards more sustainable industries is very sensible, and desalination can play a key role in this," Leaper said. "It's not just about producing water for Saudi citizens, it's also exporting high-value mineral products to the wider world." 

Discussing the investment from Par Equity, Leaper highlighed how the firm recognized Watercycle's potential in the context of the company’s focus on sustainability. “Par Equity saw the huge potential of Watercycle, and it is very experienced in investing in hardware and deeptech companies, with a focus on the net zero transition," he said. "They also focus on investments in the north of the UK, and so, we were in their sweet spot. We are excited to be working with them and we believe they are the perfect partners to help Watercycle grow."