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Why Battery Recycling Startup Circu Li-ion Leads With Economics, Not Environmental Impact
Creating a new category requires more than just innovative technology – it demands a complete reimagining of how customers perceive and solve existing problems. For Circu Li-ion CEO Antoine Welter, this meant challenging the fundamental assumptions about battery recycling while building a business case that speaks directly to customers’ bottom line.
During a recent episode of Category Visionaries, Antoine shared how a three-week customer discovery trip across the U.S. transformed his go-to-market strategy: “If you start a story with sustainability, no one cares, but you always need to start with money first.” This insight led Circu Li-ion to lead their sales conversations with a compelling economic proposition – “anywhere above 40% less cost by using our service.”
But securing customer buy-in required more than just promising cost savings. Antoine learned that successful deployment hinged on winning over the actual users of their technology, not just decision-makers: “We’ve seen that in the customers developing most successfully, it’s not because the CEO or the strategy or head of operations love what we do, it’s because the people on the field love what we do, where we help them have a better workflow.”
This ground-up approach to adoption proved crucial for overcoming the inherent challenges of category creation. As Antoine notes, “you really need to be substantially better to change the pattern of how people work.” For Circu Li-ion, this meant developing a solution that could handle the complexity of various battery types while remaining operationally simple enough for daily use.
Rather than building standalone facilities, Circu Li-ion developed what Antoine calls “the McDonald’s of upcycling” – a standardized solution that can be implemented within existing infrastructure. “We set up the process, we provide the technology and the menu card, but then we roll out with recyclers and oems that they can implement our solution on their sites.”
This approach solved multiple challenges simultaneously. It addressed regulatory hurdles, as Antoine explains: “By using existing infrastructure, we can scale a lot quicker.” It also allowed for rapid deployment while maintaining quality control – each installation requires only 30 square meters of space within an existing facility.
For founders building category-defining companies, Antoine emphasizes the importance of actively seeking and embracing negative feedback: “Don’t focus on the yeses that you get. Focus on the nos and make sure you can fix those.” He recommends using “The Mom Test” methodology, suggesting founders should “get at least one no” in each customer meeting.
This commitment to honest feedback extends to their overall market approach. As Antoine advises, “Be honest to yourself of what you’re seeing and what you’re hearing. Don’t try to sugarcoat if a customer says, I don’t pay for that or I don’t pay for this.”
Circu Li-ion’s journey illustrates a crucial lesson for technical founders: even the most innovative solution needs to be packaged and presented in a way that aligns with customers’ immediate priorities. While the environmental benefits of their technology are significant, leading with cost savings and operational efficiency has proven far more effective in driving adoption.
Antoine’s experience shows that category creation isn’t just about having superior technology – it’s about understanding and adapting to the real-world constraints and priorities of your customers. By focusing on economic benefits first and environmental impact second, Circu Li-ion has found a way to make sustainable technology commercially viable at scale.
Actionable
Takeaways
Leverage Personal Experiences for Business Insights:
Antoine's early experiences with anti-consumption and environmental consciousness shaped his entrepreneurial journey. For founders, personal beliefs and experiences can be a powerful source of inspiration and differentiation. When looking for business ideas, reflect on personal values and how they can address global challenges.
Focus on Solving Big Problems with Simple Solutions:
Circu Li-ion addresses the complex issue of battery waste with a relatively straightforward approach — disassembling and recycling components. This highlights the importance of aiming to solve significant problems with solutions that, at their core, are simple and understandable. Founders should seek out big problems and consider if there is a simpler, overlooked solution.
Build a Flexible and Adaptable Technology Foundation:
The ability of Circu Li-ion's technology to handle a variety of battery types showcases the importance of building flexibility into your product from the start. Founders should consider how their solutions can be adaptable to different use cases or customer needs, potentially opening up new market opportunities.
Start with a Clear Economic Value Proposition:
Especially in B2B, the economic benefit of your solution is often the primary interest of potential customers. Antoine's strategy of leading with cost savings in the US market underscores the necessity of having a clear, compelling economic value proposition before layering on additional benefits like sustainability.
Use Existing Infrastructure for Scalability:
Circu Li-ion's strategy to scale by integrating their solution into existing facilities provides a model for rapid expansion without the burden of building from scratch. For startups in sectors where infrastructure is a barrier, partnering with established players can offer a pathway to scaling while mitigating risks and capital expenditure.
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