Used batteries successfully reused in 2nd-life or recycled by specialized companies.
AI-supported software enables state of health analysis of batteries after use in 1st-life and a simulation of future use.
2nd-life use contributes to less CO2, reduces the use of valuable raw materials,and ensures scalable cost reductions.
Mainz, January 24, 2024: Circunomics, the start-up founded in Mainz in 2019, has significantly exceeded its own expectations in 2023 and closed the fiscal year with a trading volume of 279 megawatt hours of storage capacity (batteries, modules, cells). The young company is therefore well on its way to establishing itself as the world's largest digital marketplace for 2nd-life use and recycling of used batteries within the circular economy.
The advantages of using Circunomics as a global, independent trading platform, with no ties to manufacturers are outstanding for both sellers and buyers. Both receive a transparent marketplace and a price overview with corresponding scalable cost advantages. They also benefit from detailed analysis of the used battery state-of-health and through digital-twin technology, subsequent simulation for 2nd-life usage. The AI-supported software used for analysis and simulation is unique to the market.
Circular economy is of great importance
"The circular economy will become increasingly important in the future. This is a great opportunity for us to take a prominent position with the digital marketplace for used batteries, modules and cells," says Felix Wagner, Co-Founder and CEO of Circunomics. He continues: "In 2030, there will be between 200 and 300 million electric vehicles on the world's roads in the automotive sector alone. This means that around six million used batteries will come onto the market every year as returns from end-of-life vehicles. Reusing or recycling these in a targeted manner is a huge task that needs to be solved. After all, we all have one goal: to produce less CO2 and consume fewer of the valuable, rare raw materials".
Circunomics focuses not only on batteries from cars, but also on battery packs from other relevant target groups: trucks and buses, ships and aviation, as well as micromobility and production waste. The digital marketplace is divided into two categories. The first focuses on batteries, modules and cells that are suitable for further use in 2nd-life. The second directs those that are unsuitable for 2nd-life, to specialized recycling companies. Suppliers and buyers decide whether to use Circunomics' digital offering purely as a trading platform or to include analytics.
Target by 2026: Increase to three gigawatts of trading volume
After a successful fiscal year in 2023, with 279 megawatt hours traded in the form of batteries, modules and cells, Circunomics' goal for the next three years is to reach over three gigawatt hours.
CEO Felix Wagner assumes that transactions on Circunomics' digital marketplace will then be split equally between pure trade and trade to include analytics and simulation.
Analytics by Circunomics is globally unique
"Our AI-supported software is unique and has many advantages for all parties involved. It provides a detailed overview of the technical SoH of the battery after its 1st-life use. Through these analytics, we can determine which 2nd-life application is best for the battery and predict how it will behave," explains Jan Born, Co-Founder and CTO of Circunomics. He adds, "In this way, we also ensure maximum transparency and help to determine a fair, realistic market price." Suppliers and buyers must go through an onboarding process before they can access the digital marketplace. By doing so, Circunomics ensures that only reputable companies with high quality standards are considered. Circunomics makes sure that customers are aware of the risks posed by highly complex batteries and that they act professional in terms of storage, transportation, installation, use, etc.
2nd-life use in a less stressful environment
According to the analysis experts at Circunomics, there is no need to worry about the reuse of used batteries in 2nd-life applications. In most cases, batteries are used for the first time under very stressful conditions. Take electric cars, for example… e-vehicles must function perfectly at all temperatures, they are exposed to a wide variety of driving and usage conditions, and they are alternately charged with 11 or 22 kW or at a fast charger with over 100 kW. Use in 2nd-life is generally much less stressful. For example, as a storage medium for a photovoltaic system, a battery does not have to withstand rapid, constantly recurring, and extreme alternating conditions. Its state-of-health at the end of the 1st-life is more than sufficient for the 2nd-life and enables continued use for years before recycling at end-of-life.
Investors convinced by award-winning marketplace
Renowned investors such as Dr. Peter Mertens, former Board Member for Development at Audi and Volvo Cars, Bram Schott, former CEO of Audi, and the Polish multi-energy group Orlen are convinced by the idea of the digital battery marketplace. The start-up has also received funding from the EU and the German government as part of the first rounds of financing. Special awards have accompanied the Start-Up's journey so far: the US consulting firm Frost&Sullivan presented Circunomics with the "Best Practice Award 2023", the Mainz-based company was the national winner of the KfW "Gründen" award, was a finalist in the "Google&SAP Circular Economy Contest" and took third place in the "Spark Award" from Handelsblatt & McKinsey. Most recently, Circunomics was awarded 2nd Best Start-Up in the automotive industry by Automobilwoche & McKinsey.
