Beyond Demo Days: How Circu Li-ion Built a Full-Scale Facility to Win Enterprise Trust

Beyond Demo Days: How Circu Li-ion Built a Full-Scale Facility to Win Enterprise Trust

PowerPoint slides and lab demonstrations rarely convince enterprise customers to adopt new hardware solutions. In a recent Category Visionaries episode, Circu Li-ion CEO Antoine Welter revealed why they took the unconventional step of building a full-scale facility to prove their battery recycling technology.

The “Paper Startup” Problem

“We’re not a paper startup,” Antoine emphasizes repeatedly during the conversation. This declaration isn’t just marketing – it’s a direct response to the skepticism hardware startups face from enterprise customers who’ve seen too many promising technologies fail to scale.

To overcome this skepticism, Circu Li-ion built their own operational plant in Germany. As Antoine explains, “customers come, they see their own classically, they do a bigger pilot project with us before they visit us, so that they can really see their own batteries being processed.”

Regulatory Reality

Building a facility wasn’t just about customer validation. Antoine notes that “the battery space is a very regulated space. So we worked over a year to get our regulation permits in Germany, and there were a few lows in that process because it cost a lot of money, a lot of paperwork we had to do.”

This investment in regulatory compliance became a competitive advantage. Instead of just promising future capabilities, they could demonstrate real-world operations that met all regulatory requirements.

From Demonstration to Distribution

The facility served another crucial purpose – proving their “McDonald’s of upcycling” model could work. “What we do is we implement ourselves in existing infrastructure,” Antoine explains. “Why do we do this? Because the whole regulatory framework is quite tricky. So by using existing infrastructure, we can scale a lot quicker.”

Their German facility became a blueprint for this distributed model, showing how their technology could be implemented within just “30 m²” of existing infrastructure. This small footprint made their solution more attractive to potential partners, as Antoine notes: “We use part of their base to implement our machine. And why do these companies do that? Because we have a very significant impact on their net contribution margin.”

Building Technical Credibility

The facility also helped establish technical credibility. As Antoine explains, “on the technical side, it’s having co-founder like Xavier, who really has the deep academic expertise and can convince everyone that he understands and can kind of talk eye to eye with them.”

Having a full-scale operation allowed their technical team to demonstrate mastery of real-world challenges, not just theoretical knowledge. This was particularly important because, as Antoine notes, “the key of what we solve is really being able to treat a high variability of batteries.”

The Long-term Investment

While building the facility required significant upfront investment, it accelerated Circu Li-ion’s path to market. Instead of spending years trying to convince customers with presentations and pilots, they could immediately demonstrate operational capabilities.

For hardware founders, Circu Li-ion’s experience shows that sometimes the fastest path to market is taking the time to build real-world proof points. As Antoine’s journey demonstrates, being “not a paper startup” isn’t just about having working technology – it’s about proving you can operate at scale in the real world.