The climate emergency is no secret. And as more consumers increasingly adopt sustainable practices, we can see the demand for certain products, services, and raw materials boom. In fact, according to Statista it is anticipated that between 2022 and 2030 the global demand for lithium-ion batteries will increase nearly seven-fold, primarily due to the growing adoption of electric vehicles. While electrification is a great step towards mitigating our effects on a warming planet, the increased use of these newer materials offers new challenges. From concerns about human rights conditions and carbon dioxide emissions in mining, and the limited efficacy of traditional recycling methods; lithium-ion batteries create a sustainability conundrum of their own.
In late 2020, Dr. Xavier Kohll and Antoine Welter identified these issues when concluding their academic research on the electrification of the industry. They noted a significant gap in the market and were especially concerned with the inefficiencies in the current recycling processes of lithium-ion batteries; in which up to 80% of batteries and their components were wasted after their initial life cycle.
Disassembly for reduced demand
In mid-2021 Kohll and Welter turned this challenge into an opportunity, and founded Circu Li-ion, a startup dedicated to sustainability, recycling and circularity; with the goal of upcycling three billion batteries by 2035. They aim to achieve this goal by offering their innovative fully automated battery disassembly and diagnostics solution to micromobility companies, automotive manufacturers, power tool providers, and other customers along the battery chain.
Their technology is unique in that it allows for the full disassembly of battery packs, down to the cell level, which enables a thorough evaluation of each cell’s condition. Machine learning algorithms then convert this operational data into an expansive battery library. Such extensive disassembly allows for additional profits by enabling the sale of component materials, bringing the costs associated with recycling down by 30%. And, from an environmental perspective, the diminished demand for new battery cells decreases carbon dioxide emissions by up to 50%.
Circu Li-ion was chosen by the European Innovation Council (EIC) to be part of their 2022 EIC Accelerator programme, which offered €2.5 million in grant funding and €3 million in equity. These funds provide Circu Li-ion with the financing necessary to make their service a reality at scale. The company is financially supported as part of the EIT Urban Mobility Investment Portfolio, which aims to invest in impact-oriented startups in the urban mobility sphere. Additionally, Circu Li-ion is EIT Urban Mobility’s nominee for the 2024 EIT Awards competition, in the Venture Prize category. The EIT Awards promote innovation and entrepreneurship in Europe.
“The EIT community has been very helpful for Circu Li-ion’s evolution. Networking opportunities have connected us with industry peers and potential partners, fostering valuable collaborations. Access to exclusive events and panels through EIT has enriched our industry insights and strategy development. Furthermore, EIT Urban Mobility’s marketing support has elevated our visibility and engagement, positioning Circu Li-ion as a leader in sustainable battery upcycling. The multifaceted support from the EIT Urban Mobility community has significantly accelerated our growth journey, showcasing the immense value of collaborative ecosystems.”
— Antoine Welter, CEO and Co-founder, Circu Li-ion
A business model for every need
Circu Li-ion’s dual business model aims to maximise the value of every battery and reimagines battery upcycling in the form of two offerings: a disassembly-as-a-service model and a machine-as-a-service model. Their disassembly-as-a-service model offers expert disassembly and diagnostics, providing clients with their expertise and technology. The machine-as-a-service model grants clients access to their own dedicated Circu Li-ion advanced machine, allowing them to feed their own data into the software and create a continuous revenue stream.
Driven by sustainability
Circu Li-ion’s operations are driven by the Sustainable Development Goals (SDGs) of affordable clean energy; industry, innovation and infrastructure; and responsible consumption and production. With sustainability embedded into the mission of the company, their work to extend the lifecycle of batteries inherently reduces the need for new batteries, curbing the carbon dioxide emissions and human rights violations that can be associated with lithium mining and battery production.
In October 2023, the company announced that it had raised €8.5 million in seed funding, allowing for the expansion of its main production facility near Karlsruhe, Germany; and the growth of their Berlin satellite office. By scaling their services further Circu Li-ion is ever closer to reaching their ambitious goal of recycling three billion batteries by 2035.
Learn more about Circu Li-ion at their website, or on the EIT Urban Mobility Innovation Marketplace.
