Our investment in METYCLE: Mining Our Cities for Sustainable Metals
Beneath the shimmering glass and towering concrete of our cities lies a hidden skeleton: a vast network of pipes, wires, and structural supports forged from industrial metals. These metals are essential for everything from power grids to pipes to the wires that carry our electricity. But what happens when these metals reach the end of their life? All too often, they head into the fragmented and opaque scrap metal world, where a lack of visibility and limited sorting leads to far too much valuable metal to be downgraded for use in lower value applications. And yet we estimate that this opaque market is today worth an estimated $160 billion growing to $300bn by 2032 (for Copper and Aluminium alone).
This is the challenge and opportunity Rafael Suchan and Sebastian Brenner — the co-CEOS of METYCLE and friends of 20 years — set out to solve: Leveraging computer vision, digital transparency and industry insights to accelerate and transform the scrap metal value chain. Today we are proud to share that 2150 has led METYCLE’s €14m Series A. Alongside a fantastic set of existing investors (DFF Ventures, Market One Capital, Partech and Project A), we look forward to supporting Rafael and Sebastian’s mission and to accelerate the efficiency and sustainability benefits of metal recycling on a global scale.
Think about the modern city. It’s a vast consumer of resources, and metals are at the heart of it all, from the steel in our skyscrapers, to the copper in our wires to the aluminum in our cars. They’re veritable “urban mines,” brimming with valuable post-consumer materials ripe for recovery. The challenge lies in efficiently extracting and repurposing these resources. And the impact of this efficiency could be significant.
Demand for aluminum and copper is accelerating, driven by key sectors like construction, which accounts for 27% and 28% of global supply, respectively, along with transport (e.g., vehicle light-weighting for EVs) and power generation and transmission. However, primary metal production is resource and emissions-intensive, with aluminum production alone emitting 1.1 Gt CO2e in 2019 (c.2% of global CO2e emissions), and iron and non-ferrous together emitting ~10% of global GHG emissions. Secondary production (i.e., using recycled metal) offers a cost-effective way to decarbonize, with METYCLE estimating up to 95% less emissions, and costing 10% less. However, melting mixed alloy scrap yields lower purity products that cannot be used in the same applications as primary metals. Alloying elements in aluminum cannot be removed, so improving scrap quality through better separation and pretreatment is crucial to sustain and increase recycling.
METYCLE has built a B2B marketplace that connects scrap metal collectors directly with international recyclers. By cutting out the layers of middlemen, they’re creating a more transparent and efficient market, ensuring better prices for both buyers and sellers. But they’re not stopping there. METYCLE is also developing AI-powered “Smart Sorting Hubs” to improve the accuracy and traceability of metal sorting. This technology has the potential to revolutionize the recycling process, allowing for better separation of alloys and reducing the need for virgin materials. The goal is clear: revolutionise the secondary metals industry by turning end-of-life materials into highly specified global commodities.
Beyond the compelling vision and the sheer scale of the market opportunity, it was the team that truly impressed us. Co-CEOs Rafael and Sebastian bring a unique blend of expertise. Rafael’s deep experience in the metal recycling industry, most recently as CEO of Scholz Recycling, combined with Sebastian’s success in scaling the CheMondis B2B chemicals marketplace, creates a formidable leadership team.
This funding round will enable METYCLE to roll out its AI-powered sorting solution while expanding its global presence and scaling its technology and commercial teams.
By improving the efficiency of the scrap metal trade and promoting the use of recycled materials, METYCLE is directly addressing the environmental footprint of the metals industry. Their efforts will help reduce GHG emissions, conserve resources, and move us closer to a truly circular economy.
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2150 is a venture capital firm investing in technology companies that seek to sustainably reimagine and reshape the urban environment. 2150’s investment thesis focuses on major unsolved problems across what it calls the ‘Urban Stack’, which comprises every element of the built environment, from the way our cities are designed, constructed and powered, to the way people live, work and are cared for. Find out more at www.2150.vc. 2150 is a part of Urban Partners.