Lyon-based startup Mecaware is poised for a significant expansion after successfully raising €40 million in Series A funding. The company, founded in 2020, has developed cutting-edge Battery recycling technology with the goal of producing essential raw materials, and it plans to scale up its operations to pre-industrial levels.
This latest investment will not only facilitate this expansion but also enable Mecaware to initiate trials of its innovative recycling technology in Verkor’s future gigafactory.
Mecaware’s groundbreaking approach to Battery Recycling focuses on repurposing end-of-life batteries and production waste from battery manufacturing facilities. The heart of their technology, which originated from research conducted at the University of Lyon, relies on a chemical process that utilizes CO2 to efficiently separate various metals present in battery cells.
This process allows for the recovery, restoration, and reuse of these metals, making it both environmentally friendly and cost-effective. Notably, Mecaware’s metal extraction technique is unrivaled on a global scale.
The €40 million in funding comes from a diverse group of investors, including the French government and banking partners, providing a strong financial backing for Mecaware’s ambitious plans. With this financial infusion, the startup is preparing to take its pilot recycling program for battery plant production waste to the next level, known as the “Gigafactories Scrap – ScrapCO2MET” initiative.
Under this project, Mecaware aims to produce a substantial 50 tonnes of recycled metal per year, with a specific focus on lithium, nickel, manganese, and cobalt.
To support this expansion and meet their ambitious goals, Mecaware will finalize the construction of a state-of-the-art Technical Center in Lyon. This facility will encompass offices, a factory building, and a cutting-edge R&D laboratory, all set to commence operations in 2025. Additionally, the company plans to double its workforce, growing from its current size to a team of 80 professionals by 2024.
Mecaware’s strategic emphasis on resource circularity aligns perfectly with the pressing issue of excess scrap generated by battery gigafactories, estimated to exceed 30%. This challenge becomes even more critical as Europe plans to increase its number of battery factories to more than 40 by 2030.
Simultaneously, the global retirement of an estimated 12 million tonnes of batteries from Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) by the end of this decade further underscores the importance of efficient recycling.
Moreover, Mecaware’s recycling of critical raw materials such as lithium and cobalt can play a pivotal role in reducing the European Union’s reliance on foreign suppliers, particularly China and Chile.
The European Commission has projected that the EU would require up to 60 times more lithium and 15 times more cobalt to achieve climate neutrality by 2050, considering only the electric mobility and renewable energy sectors.
Arnaud Villers d’Arbouet, co-founder and CEO of Mecaware, expressed his confidence in the company’s approach, stating, “[Mecaware’s approach] makes it possible to secure supplies of raw materials, enabling the strategic independence of our territories to bolster the energy transition, all in compliance with EU Regulations. Our technological solution addresses the current problems caused by traditional processes.”
As Mecaware moves forward with its groundbreaking recycling technology, it not only contributes to the sustainable management of critical resources but also strengthens Europe’s position in the global transition to clean energy. The successful Series A funding round is a significant step toward realizing this vision, positioning Mecaware as a key player in the battery recycling industry.
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