Librec raises CHF 3 million seed round to grow its lithium-ion battery recycling technology for the e-mobility market
13.08.2021
CleanTech-startup and Venture Kick alumni Librec raises 2.6 million francs from oversubscribed seed round and receives a 400k loan from Federal Office for the Environment. Additionally, Innosuisse contributes 1 million to finalize process technology and implement unmatched recovery of all components of more than 90%. We interviewed CEO Jodok Reinhardt to know more about his entrepreneurial path and future visions for Librec.
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Librec provides world-leading technology for “closed-loop” recycling of large lithium-ion batteries from e-mobility. All components are recovered by more than 90% and reused in new batteries. Besides Cobalt, Lithium, Nickel, Copper, Aluminium, Manganese, electrolyte, separator, and all housing components, Librec will be the first to also recover valuable graphite from batteries. Residual energy from batteries covers one-third of the required process energy. “Our technology allows for full recovery at very low energy demand and thus for a saving of 8.1tons CO2 per ton of recycled batteries against mining and 4.8tons CO2 against previous recycling technologies such as smelting and pyrolysis,” says CTO Denis Werner.
Librec’s integrated recycling centres provide all services for defective and end-of-life batteries; including the collection of batteries and cars, testing and re-use of batteries in ‘second life’ applications, as well as removal from car, repair, discharge, dismantling and “closed-loop” recycling. The integration avoids dangerous and expensive battery transportation, and a centre economically clears a circular area of about 600km diameter. Combined with full recovery of all components, Librec centres operate at 40% lower cost than any other set-up.
The ongoing massive build-up of battery manufacturing capacity and launch of many new models lead to large amounts of manufacturing scrap (10 to 20% in ramp-up), defective test series and recalls. Today, Europe lacks a “closed-loop” recycling capacity of 150’000 tons per year and of 360’000 tons by 2025. Additionally, end-of-life battery volumes will reach 150’000 tons per year by 2025 and grow rapidly thereafter.
CEO Jodok Reinhardt is convinced that “with our compelling technology and aligned interests from our investors, the Federal Office for the Environment, Innosuisse, Swiss e-Mobility, auto Schweiz, EMPA, Berne University of Applied Sciences, SIPBB and our first customers, ingredients and timing are just right to hit the growth path."
Source: Librec Press Release
Jodok, How will the 3-million-investment from large and professional family offices help achieve your vision?
We now prepare for collection of batteries starting January 1st 2022, finish R&D and machinery specifications with the support of an additional Million from Innosuisse, get building and operating permits, and prepare Series A financing round over 30 million by mid-2022. With this capital, we go live with production in Switzerland by end of 2023 and prepare five international sites with local teams and 3 Million each.
You won Venture Kick stage 2 in 2021. How did it help you lay the foundation for your growth and today's achievement?
VentureKick is of invaluable help in almost all aspects. We joined various Venture Kick pieces of training re deep-tech/engineering projects, business case structuring and pitch preparation. Through the VentureKick pitches we got access to interesting investors and – last but not least – the increased visibility through all the VentureKick channels is very helpful. Personally, I remember a pivotal moment in several hours exchange with Jordi, where the team and I were critically challenged and at the same time very much encouraged and strongly confirmed to progress and go abroad even faster.
When, and what, was your inspiration to found LIBREC?
After a very interesting career in the corporate world, actually, my wife and I found that purpose is most important in our professional lives. As an ETH graduate in environmental chemistry, an MBA from IMD and many years of industry and CEO experience, the challenge to support e-mobility with an industrial, closed-loop battery recycling just matched very well. Imagine that in a few years we drive with renewable energy and can fully recycle the complete battery – this is a massive improvement against today’s situation and deeply motivating.
What is your advice for the potential cleantech entrepreneurs launching companies in Switzerland today?
Sometimes it's hard and you may feel lonely. In these moments your own believes and your own energy is the only thing you can rely on. And – within cleantech – you will be confirmed and supported, as becoming more sustainable is not an option anymore, but an imperative requirement.
Librec’s integrated recycling centres provide all services for defective and end-of-life batteries; including the collection of batteries and cars, testing and re-use of batteries in ‘second life’ applications, as well as removal from car, repair, discharge, dismantling and “closed-loop” recycling. The integration avoids dangerous and expensive battery transportation, and a centre economically clears a circular area of about 600km diameter. Combined with full recovery of all components, Librec centres operate at 40% lower cost than any other set-up.
The ongoing massive build-up of battery manufacturing capacity and launch of many new models lead to large amounts of manufacturing scrap (10 to 20% in ramp-up), defective test series and recalls. Today, Europe lacks a “closed-loop” recycling capacity of 150’000 tons per year and of 360’000 tons by 2025. Additionally, end-of-life battery volumes will reach 150’000 tons per year by 2025 and grow rapidly thereafter.
CEO Jodok Reinhardt is convinced that “with our compelling technology and aligned interests from our investors, the Federal Office for the Environment, Innosuisse, Swiss e-Mobility, auto Schweiz, EMPA, Berne University of Applied Sciences, SIPBB and our first customers, ingredients and timing are just right to hit the growth path."
Source: Librec Press Release
Jodok, How will the 3-million-investment from large and professional family offices help achieve your vision?We now prepare for collection of batteries starting January 1st 2022, finish R&D and machinery specifications with the support of an additional Million from Innosuisse, get building and operating permits, and prepare Series A financing round over 30 million by mid-2022. With this capital, we go live with production in Switzerland by end of 2023 and prepare five international sites with local teams and 3 Million each.
You won Venture Kick stage 2 in 2021. How did it help you lay the foundation for your growth and today's achievement?
VentureKick is of invaluable help in almost all aspects. We joined various Venture Kick pieces of training re deep-tech/engineering projects, business case structuring and pitch preparation. Through the VentureKick pitches we got access to interesting investors and – last but not least – the increased visibility through all the VentureKick channels is very helpful. Personally, I remember a pivotal moment in several hours exchange with Jordi, where the team and I were critically challenged and at the same time very much encouraged and strongly confirmed to progress and go abroad even faster.
When, and what, was your inspiration to found LIBREC?
After a very interesting career in the corporate world, actually, my wife and I found that purpose is most important in our professional lives. As an ETH graduate in environmental chemistry, an MBA from IMD and many years of industry and CEO experience, the challenge to support e-mobility with an industrial, closed-loop battery recycling just matched very well. Imagine that in a few years we drive with renewable energy and can fully recycle the complete battery – this is a massive improvement against today’s situation and deeply motivating.
What is your advice for the potential cleantech entrepreneurs launching companies in Switzerland today?
Sometimes it's hard and you may feel lonely. In these moments your own believes and your own energy is the only thing you can rely on. And – within cleantech – you will be confirmed and supported, as becoming more sustainable is not an option anymore, but an imperative requirement.