Circunomics opens US office in Detroit
Circunomics says the American automotive and battery market is of great importance. Circunomics assumes that US sales of more than 1.3 million electric vehicles in 2024 “will grow exponentially in the coming years”. Despite the Trump government’s lack of support for electric vehicles, robust electric vehicle sales and the government’s aversion to battery materials from China may prove to be fertile ground for reuse and recycling markets for batteries.
Circunomics already announced its further internationalization with the conclusion of the Series A financing of eight million euros in January, which has now resulted in the opening of the US office.
The new North American branch will be headed by Adam Willmouth as Managing Director, who the company describes as an “experienced e-commerce and e-procurement manager.” Willmouth previously worked for Accenture and the software group Oracle and has already opened branches in the USA, Latin America and Asia for his previous employers. Circunomics says his experience will “play a major role in the success of Circunomics in achieving its expansion goals”.
The Mainz-based company hopes that its US presence will bring it closer to American car manufacturers, battery suppliers, storage system producers and recycling companies.
The company’s business model is a battery lifecycle management solution with a digital marketplace and AI-supported analysis that takes the entire lifecycle of the batteries into account. This means that the focus is on B2B trading of used or surplus batteries, modules and cells on a digital marketplace and the transfer of energy storage systems from first-life use to second-life use.
The AI-supported software from Circunomics enables a detailed analysis of the respective state of health (SoH) of the batteries and, using a digital twin, a simulation “for which second use their performance potential is best suited,” explains Jan Born, Co-Founder and CTO of Circunomics.. If the software establishes that further use of the battery, for example in a stationary storage facility, is sensible and safe, the battery is offered for this purpose. However, if it cannot be used in Second Life due to its condition, the battery is passed on to “qualified recycling companies”.
Felix Wagner, co-founder and CEO of Circunomics, explains, “Our Battery Lifecycle Management solution addresses a global challenge – how to utilise the full lifespan of each lithium-ion battery and subsequently secure an environmentally safe protocol for disposal.”
Wagner noted that, while Circunomics operates European business from its headquarters in Mainz, Germany, “We look forward to being able to better focus on the North American market through our new office in Detroit.”
The second life and recycling markets are nascent in Western economies. Wagner states that his company has a firm view of the “volatility of the market development of electric vehicles as well as the geopolitical changes across all continents.”
“We are moving forward step by step and in an economically sustainable manner,” says the Circunomics co-founder. “As seen in 2024, sudden changes within the battery market can bring challenges and require adjustments. However, with the support of enthusiastic investors, we are on a solid path to a profitable, sustainable, and bright future.”
Second-life and recycling business is fairly new and growing rapidly in the West, but firmly established in China, where the combination of e-commerce and second-life models was promoted in industrial policy in 2018. Currently, according to battery market insiders working on battery innovation in Europe, the flood of cheap Chinese batteries is making things awkward for second life markets in the West. Government efforts to maximise the value of critical raw materials with initiatives such as the Battery Pass, which is not only a European drive, but international as well, also help regions to retain materials and maximise their value.
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