Circular economy: Circunomics cooperates with Shell

Automotive batteries contain many valuable and sometimes toxic components. Nevertheless, after their first life cycle in a new car, they are often already disposed of. The startup Circunomics wants to change that. With the help of software, its employees evaluate battery data, create a digital twin and enable the resale of batteries to customers in the energy storage industry via an online platform. In an interview, Circunomics founder Felix Paul Wagner talks about how this came about and why a cooperation with Shell will now help establish the new marketplace for used batteries.

Felix, you only founded your company in 2019 and have already been cooperating with the oil company Shell since 2022. How did you manage to do that?

Actually, the team at Shell approached us. The employees had heard a podcast in which we appeared.

What do you expect from this cooperation?

Shell, as a group, has a large network with many companies that could use used batteries in a second or even third life cycle. The cooperation helps us reach these potential customers and gives us a head start in terms of trust.

And what does Shell get out of it?

The company wants to achieve net zero emissions by 2050. Large-scale storage systems made from used batteries, which can be used to store energy from solar power, for example, make an important contribution to this goal.

How did you come to specialize in the analysis and marketing of used batteries in the first place?

With the growing trend towards e-mobility, the number of used lithium-ion batteries is increasing more and more. Many of these batteries are still intact after their “first life” in the car and could actually be used for many more years. Instead, however, they are often simply disposed of. Uniform standards and processes for recycling do not exist.

This means that a new market is just emerging here, which we as a startup can help shape. We want to make batteries usable for as long as possible. At least over two, if possible even over three life cycles.

What has been the biggest challenge for you in your cooperation with Shell so far? What has surprised or excited you?

My experience as a founder is that when initiating collaborations with large companies, you should already have staying power and, at best, a financial cushion for this period. Before Circunomics, I had already founded and sold a startup in Australia, so we were able to approach the founding of Circunomics in a relatively relaxed manner.

The initiation of the cooperation with Shell, however, was incredibly fast in my opinion. It took just half a year from the first meeting to the signing of the cooperation agreement.

That sounds great! It’s exciting that you’ve already founded a company in Australia. What conclusion do you draw from your start-up experience in Germany?

We deliberately decided to start up in Germany because we are close to our major customers in the automotive industry here. Things are still a bit more conservative in the industry, so it’s important to meet locally.

In general, however, there are unfortunately still many disadvantages for founders in Germany. I hope that this will change in the future with the FDP-occupied Ministry of Finance, which at least feels like it has a bit more of an idea about the startup scene.

Can you give an example?

Of course. One important point, for example, is employee participation. As a startup, we can’t pay high wages compared to corporations. But we could theoretically offer a shareholding. Our startup is worth 9.5 million euros at the moment. Assuming I were to give a share of 10 percent, i.e. 950,000 euros, to an employee today, he would have to pay tax on it directly. But he doesn’t have the 950,000 euros in his account because, after all, it’s only shares and he wouldn’t be able to do that.

Contact

Website: www.circunomics.com

LinkedIn: Felix Paul Wagner