The owners of a new battery recycling facility in the Black Country say they have been left £750,000 out of pocket after being unable to open due to delays in securing permits from the Government.
Fenix Battery Recycling, which is backed by a team of six investors, was initially due to open in late 2020 after directors first announced plans for a vacant industrial site in Willenhall that autumn.
Once operational, the plant will recycle a range of batteries such as those found in mobile phones, laptops, hearing aids and electric vehicles.
But the directors are still waiting to launch because the Environment Agency is yet to issue a permit to the business.
Directors said the delays had already cost the company £750,000 and it is poised to sign a new contract worth £9 million for which the paperwork must be completed in March otherwise Fenix risks losing the tender altogether.
When the plant in Field Street starts operating, it will be the UK's largest battery recycler for alkaline and lithium batteries, the company claims, with capacity to recycle all battery types and directors hope the business will grow to become one of the world's largest recycling brands over the next decade.
Fenix said it expected to recycle 10,000 tonnes of batteries per year with the aim of increasing that figure to 20,000 and, once recycled, the batteries can then be used directly in new manufacturing processes.
Six staff are currently employed at the 15,000 sq ft plant but a further 45 technical and R&D posts are due to be created and 100 posts at a second site in Kilwinning, near Glasgow.
Fenix said it first submitted a permit application for a standard waste management licence in August 2020 which would have allowed it to begin operations by recycling just standard alkaline batteries.
The company said it was advised by the Environment Agency to apply for a so-called 'installation permit' covering the full range of battery recycling including lithium ion units typically found in consumer electronic goods.
In November 2020, Fenix's application was declared incomplete because, the company says, its application was transferred by the Environment Agency to its installation permitting team and this department could not accept the transfer made internally.
Fenix therefore resubmitted its application to the installations team that same month with the necessary updates but this was again judged as "incomplete" by the Environment Agency.
The company then resubmitted another application for the full installation permit in February 2021 and, following a request for further information, this permit was ‘duly made' in May.
‘Duly made' means the agency has all the necessary information to be able to make a decision on whether or not it will grant a permit.
Fenix said that application should have been granted by the end of September but the company was hit by another request for information by the Environment Agency a week before Christmas.
And in January, the Environment Agency advised Fenix that a new permitting officer had been assigned to its case to assess the application.
Directors say that they "completely understand" the pressures the agency has been under but have been left frustrated by the delays as it is now 18 months since that initial application was lodged with the Government.
Throughout this process, Fenix has been advised by environmental consultants and specialist lawyers, who previously worked for the Environment Agency, to ensure all the relevant information was present and correct.
Separately, directors said they were expecting to hear by January 25 whether they would get a permit transferred from the previous operator of the site they took over in Scotland which they understand has now been delayed until March.
Fenix's rent, rates and staffing costs covering both the Willenhall and Kilwinning sites are £60,000 a month as the facilities continue to lay dormant and unable to trade.
Co-founder Damian Lambkin, who previously ran a waste management firm for two decades, told BusinessLive: "We believe in what we are doing and are willing to do whatever it takes to get it up and running.
"So far we've not made any money yet - we want to get this over the line so we can start operating our facilities. Our consultants don't understand why we are having to go to such great lengths, we can prove that we have supplied complete applications.
"We have spent £70,000 on applications for just one permit. The initial standard waste management licence should have cost £3,500 and would have allowed us to at least get up and running and start trading."
A statement from the Environment Agency said: "The Environment Agency's National Permitting Service is dealing with the application submitted by Fenix Battery Recycling as a priority.
"We are, though, waiting for additional information to be provided by the applicant that enables us to complete our assessments and address concerns about the potential risks posed to the environment and surrounding communities."
In response, Mr Lambkin said the company had received a request for more information from the Environment Agency but this had come months after its permit should have been issued in September.
