How the financing was structured

The round was structured as a SAFE (Simple Agreement for Future Equity), a convertible instrument that grants investors rights to future equity upon a triggering event such as a priced equity round or acquisition .

Investor consortium: The round was backed by a mix of institutional and strategic European investors:

• CDP Venture Capital — the venture capital arm of Italy's Cassa Depositi e Prestiti
• European Innovation Council (EIC) Fund
• EIT RawMaterials — the EU's flagship raw materials initiative
• 360 Capital
• Corbites
• Lumar S.r.l.

The participation of both the EIC Fund and EIT RawMaterials — the two primary institutional channels for critical-materials innovation within EU policy architecture — signals that secondary metal recovery from liquid industrial waste is now treated as a strategic supply pathway by European institutions, not a speculative bet .

Regulatory tailwind: The company's RECOVER-IT initiative already holds Strategic Project status under the EU Critical Raw Materials Act (CRMA). This status provides streamlined permitting and priority access to EU public financing instruments — a structural advantage that foreign competitors cannot replicate .

How the SWaP™ technology works

Circular Materials' core technology is called Supercritical Water Precipitation (SWaP™). The process works by treating industrial wastewater at supercritical conditions — specifically, water heated to 374°C and pressurized to 220 bar — where water exhibits properties of both a liquid and a gas . At these conditions, dissolved metals precipitate out of the water as solid particles.

Performance claims: The company reports >99% recovery of dissolved metals while dramatically reducing the generation of hazardous sludge — the toxic byproduct that conventional wastewater treatment creates and must then incinerate or landfill separately . The output isn't toxic sludge: it's directly saleable secondary raw material .

End-of-Waste status: The existing Padua facility has achieved End-of-Waste status under the EU Waste Framework Directive. This regulatory designation means the recovered materials legally re-enter commercial supply chains as secondary raw materials rather than waste, enabling their sale to metal buyers and manufacturers .

Customer base: The company contracts with metal-finishing plants, electroplating facilities, battery recyclers, and chemical manufacturers. For customers, SWaP converts what was a disposal cost into a potential revenue stream .

How the funds will be used

Circular Materials will deploy the €11.8 million across two primary infrastructure priorities:

• Padua hub expansion: Increase operational throughput at the existing industrial-scale facility in Cadoneghe (Padua province) .
• Ferrara hub: Construct a second industrial recovery hub in Ferrara, Italy. This new facility is expected to demonstrate consistent commercial throughput by Q2 2027 .

The build-out directly supports the EU CRMA target that at least 40% of annual EU consumption of strategic materials must be processed within European borders by 2030. Secondary recovery from industrial waste streams is explicitly recognized as a qualifying supply pathway within the Act .

Key commercial caveats

While the financing and regulatory signal are strong, the company's commercial trajectory depends on execution and market development:

• The Ferrara hub has not yet reached full commercial throughput; consistent performance at cost targets by Q2 2027 is the primary watchpoint .
• Long-term profitability depends partly on whether EU procurement rules for battery supply chains begin to favor secondary-recovered metals or set minimum secondary-content mandates. Strategic Project status buys permitting speed and capital access, but it does not guarantee a market at favorable prices .

How the financing was structured

The round was structured as a SAFE (Simple Agreement for Future Equity), a convertible instrument that grants investors rights to future equity upon a triggering event such as a priced equity round or acquisition .

Investor consortium: The round was backed by a mix of institutional and strategic European investors:

• CDP Venture Capital — the venture capital arm of Italy's Cassa Depositi e Prestiti
• European Innovation Council (EIC) Fund
• EIT RawMaterials — the EU's flagship raw materials initiative
• 360 Capital
• Corbites
• Lumar S.r.l.

The participation of both the EIC Fund and EIT RawMaterials — the two primary institutional channels for critical-materials innovation within EU policy architecture — signals that secondary metal recovery from liquid industrial waste is now treated as a strategic supply pathway by European institutions, not a speculative bet .

Regulatory tailwind: The company's RECOVER-IT initiative already holds Strategic Project status under the EU Critical Raw Materials Act (CRMA). This status provides streamlined permitting and priority access to EU public financing instruments — a structural advantage that foreign competitors cannot replicate .

How the SWaP™ technology works

Circular Materials' core technology is called Supercritical Water Precipitation (SWaP™). The process works by treating industrial wastewater at supercritical conditions — specifically, water heated to 374°C and pressurized to 220 bar — where water exhibits properties of both a liquid and a gas . At these conditions, dissolved metals precipitate out of the water as solid particles.

Performance claims: The company reports >99% recovery of dissolved metals while dramatically reducing the generation of hazardous sludge — the toxic byproduct that conventional wastewater treatment creates and must then incinerate or landfill separately . The output isn't toxic sludge: it's directly saleable secondary raw material .

End-of-Waste status: The existing Padua facility has achieved End-of-Waste status under the EU Waste Framework Directive. This regulatory designation means the recovered materials legally re-enter commercial supply chains as secondary raw materials rather than waste, enabling their sale to metal buyers and manufacturers .

Customer base: The company contracts with metal-finishing plants, electroplating facilities, battery recyclers, and chemical manufacturers. For customers, SWaP converts what was a disposal cost into a potential revenue stream .

How the funds will be used

Circular Materials will deploy the €11.8 million across two primary infrastructure priorities:

• Padua hub expansion: Increase operational throughput at the existing industrial-scale facility in Cadoneghe (Padua province) .
• Ferrara hub: Construct a second industrial recovery hub in Ferrara, Italy. This new facility is expected to demonstrate consistent commercial throughput by Q2 2027 .

The build-out directly supports the EU CRMA target that at least 40% of annual EU consumption of strategic materials must be processed within European borders by 2030. Secondary recovery from industrial waste streams is explicitly recognized as a qualifying supply pathway within the Act .

Key commercial caveats

While the financing and regulatory signal are strong, the company's commercial trajectory depends on execution and market development:

• The Ferrara hub has not yet reached full commercial throughput; consistent performance at cost targets by Q2 2027 is the primary watchpoint .
• Long-term profitability depends partly on whether EU procurement rules for battery supply chains begin to favor secondary-recovered metals or set minimum secondary-content mandates. Strategic Project status buys permitting speed and capital access, but it does not guarantee a market at favorable prices .