Poland’s ORLEN VC Backs Circunomics to Drive Electric Vehicle Battery Sustainability

Poland’s ORLEN VC Backs Circunomics to Drive Electric Vehicle Battery Sustainability

(IN BRIEF) ORLEN VC, the largest corporate venture capital fund in Poland owned by the ORLEN Group, has invested in Circunomics, a platform for battery reuse and recycling in electric vehicles. The investment aims to reduce the carbon footprint of electric vehicles by up to 50%. Circunomics offers a closed-loop ecosystem for EV batteries, monitoring their condition and facilitating reuse and recycling. ORLEN VC plans to make an average of five to six direct investments per year, focusing on promising companies with innovative technologies. This investment is part of ORLEN VC’s commitment to sustainable mobility and aligns with their ORLEN2030 strategy.

(PRESS RELEASE) PŁOCK, 14-Jun-2023 — /EuropaWire/ —  PKN ORLEN (WSE: PKN), a Polish oil refiner and petrol retailer, announces that ORLEN VC, the largest corporate venture capital fund in Poland owned by the ORLEN Group, has made a significant investment in Circunomics, a cutting-edge platform that enables the reuse and recycling of batteries from millions of electric vehicles (EVs) annually. By becoming a major shareholder in Circunomics, ORLEN VC aims to reduce the carbon footprint of EVs by up to 50%. This strategic investment reflects ORLEN VC’s commitment to sustainable mobility solutions.

“We invest in interesting, forward-looking solutions set to enhance our competitive advantages and drive the growth of the combined ORLEN Group, with a beneficial impact on the environment. Circular economy technologies, especially in areas such as energy and new mobility, have enormous potential. We can see tangible business gains and environmental benefits they can unlock for us. We have invested in yet another tech company that, with our strategic and capital support, will be able to bring its innovative idea into being for greener use of electric vehicles. ORLEN VC’s new investment is fully aligned with the development directions we have adopted and our efforts to achieve carbon neutrality,” says Daniel Obajtek, President of the Management Board and CEO of PKN ORLEN.

Circunomics, a leading start-up in circular economy and battery monitoring solutions, has developed a comprehensive closed-loop ecosystem for EV batteries. The platform monitors the condition and sales of batteries throughout their lifecycle, facilitating their reuse and ultimately recycling. This innovative approach allows for the recovery of rare earth metals, such as lithium, nickel, and cobalt, for the production of new batteries. Circunomics has garnered support from industry investors, including the Next Mobility Labs venture studio, German recycling company TES, and former executives from the AUDI Group.

“We are delighted to have partnered with ORLEN – a major player in Europe. The ORLEN Group is strongly committed to becoming a carbon-neutral business in the future. Circunomics can significantly contribute to achieving this ambition. With the partnership we have secured a source of new capital, but also a deeper insight into the energy and automotive industries, as well as strategic support,” said Felix Wagner, CEO and co-founder of Circunomics.

The EV market in Europe has witnessed significant growth, with electric cars accounting for a 10% share in the passenger car segment in 2023. Europe currently holds the second-largest EV market globally, with approximately 2.5 million electric vehicles sold last year alone. Furthermore, Europe leads in battery production, producing 2,000 GWh annually, while Asia follows with an estimated production capacity of 1,400 GWh per year.

Forecasts indicate that by 2030, Europe will emerge as the leader in electric vehicle sales, driving the global capacity of second-life batteries to reach 1,000 GWh. This growth will be fueled by increasing production volumes, demand for batteries, longer delivery times for new batteries, rising demand for lithium amid supply constraints, and the expanding role of stationary energy storage facilities.

Circunomics marks the sixth start-up in which ORLEN VC has invested, demonstrating its commitment to fostering technological advancements in line with the ORLEN2030 strategy. In less than two years of operation, ORLEN VC has built an impressive portfolio of technology companies from across Europe and two foreign investment funds. With a focus on direct investments in promising companies with innovative and market-ready technologies, ORLEN VC solidifies its position among the largest and most active investment funds in Central and Eastern Europe.

Media contact:
media@orlen.pl

SOURCE: PKN ORLEN