Circunomics, a startup from Mainz, Germany, has found a solution to this growing problem: repurposing these excess batteries. And could help car makers in this hard moment of transition.
The Vision
Felix Wagner, co-founder and CEO of Circunomics, has made a bold promise. By 2030, Circunomics aims to help the top 10 global automotive manufacturers generate an additional €1 billion in annual revenue.
How? By giving electric vehicle batteries a second life. The startup’s model involves taking unused or lightly used EV batteries from major automakers like Stellantis and Audi, and reselling them to companies looking to repurpose these batteries for other uses.
With the European market for electric cars facing a slowdown in sales, Circunomics offers automakers a unique opportunity to offload their unused battery inventory, which would otherwise lose value in storage.
Circunomics’ Role: The Battery Broker
Circunomics essentially acts as a broker in the EV battery market. Working directly with automotive giants such as Stellantis and Audi, they purchase batteries for prices ranging between €40 to €70 per kilowatt-hour, depending on the battery’s condition. These batteries are then resold to industries that can give them a second life, such as energy storage systems or even non-automotive sectors.
One notable example is Audi’s collaboration with Deutsche Bahn, where unused and second-hand batteries find new purpose in the railway industry.
For batteries that are not fit for reuse, Circunomics facilitates connections between automakers and battery recycling companies, ensuring that the materials are not wasted and can be efficiently processed.
A growing market for repurposed batteries
By 2030, Circunomics estimates that 5 to 6 million EV batteries from passenger vehicles alone will reach the end of their life each year. However, before being fully recycled, these batteries still hold residual capacity that can be utilized in secondary applications for several more years.
This approach aligns with global sustainability efforts, as reusing batteries can delay their entry into the recycling stream while providing valuable storage solutions for various industries.
Circunomics’ platform goes beyond mere battery sales by offering AI-based analysis tools that assess each battery’s health and remaining capacity. This technology ensures transparency and accuracy in transactions, as manufacturers can clearly understand the state of each battery before it is resold or recycled.
Addressing Europe’s battery surplus
One of the driving factors behind Circunomics’ rise is the surplus of electric vehicle batteries in Europe, exacerbated by the decline in EV production. Automakers face the challenge of storing these batteries, which degrade over time. As a result, batteries must be sold or repurposed before their capacity diminishes below 100%, as they can no longer be used in new electric vehicles.
This challenge has become an opportunity for Circunomics. By connecting unused batteries with sectors that require energy storage solutions, Circunomics is helping automakers avoid potential losses while addressing a broader market need.
