Authors: Olamilekan Olugbayila, and Maarten Buysse, Innovation Consultants at Bax
In collaboration with: Teresa Oberhauser, Head of EU Research and Government Relations at Circularise
As electric vehicle (EV) adoption surges and new regulations demand transparency, battery manufacturers and carmakers face growing pressure to track the lifecycle of their products. Circularise, a Dutch company founded in 2016, has developed a blockchain-based digital product passport platform to drive sustainable, responsible, and circular battery value chains. By gathering data from across the supply chain and allowing secure, selective sharing of information, Circularise’s solution helps Original Equipment Manufacturers (OEMs) comply with emerging EU battery regulations while protecting suppliers’ sensitive intellectual property (IP).
This case study examines Circularise’s innovation, how it works in practice, its business model, key challenges, and future plans.
Blockchain-powered innovation: digital battery passports with privacy
One of Circularise’s core offerings is a Battery Passport – a digital record that travels with a battery, storing all key information about its materials, production, and lifecycle. Unlike a traditional database, Circularise’s platform is built on a public blockchain, providing an immutable audit trail and publicly verifiable claims about a battery’s provenance and sustainability.
The innovation lies in combining transparency with confidentiality. Circularise employs a patented “Smart Questioning” technology based on zero-knowledge proofs (ZKPs) to enable data sharing without revealing underlying proprietary data. In practice, this means a supplier can prove a claim (for example, that a battery contains 20% recycled cobalt) to an OEM or regulator cryptographically – with the system verifying the claim on-chain – without disclosing the detailed recipe or sensitive process data. This approach achieves both anonymity and transparency in supply chain management.
How it works in practice
Implementation typically begins with OEMs seeking compliance solutions for the EU Battery Regulation. Circularise supports these OEMs in clarifying their regulatory requirements. The OEM then engages suppliers to securely input data into Circularise’s blockchain-based system. Suppliers retain control over data visibility, sharing only necessary details via Smart Questioning.
Key features of Circularise’s technology include:
1. Selective data sharing: Companies maintain fine-grained control over what data is shared and with whom. Through Smart Questioning (ZKP), stakeholders can verify material attributes or certifications query-by-query while the sensitive details remain hidden.
2. Comprehensive data capture: The platform collects critical information across a battery’s value chain – from raw material sourcing and chemical composition to carbon footprint and recycling history. All this data is tied to a digital product passport (often accessible via a QR code on the physical battery) which consolidates the reporting data needed under regulations.
3. User-friendly interface: While sophisticated cryptography runs in the background, the front-end interface presents a clean digital passport view. OEMs and auditors can scan a code or log in to see a battery’s profile – e.g. its unique ID, manufacture date, materials origin, state-of-health, and compliance metrics – without needing blockchain expertise. The simplicity of the passport UI hides a complex back end that continuously aggregates and verifies supply chain data.
The business model: SaaS for supply chain transparency
Circularise operates a B2B software-as-a-service (SaaS) business model centred on its traceability platform. The company offers software subscriptions or licensing to enterprises – typically starting with large OEMs, battery manufacturers, or material suppliers who serve as the entry points to a supply chain.
Primary customers are OEMs who must comply with battery passport regulations, followed by their suppliers who are subsequently onboarded. The revenue model likely involves subscription fees tiered by data volume and product complexity.
The value proposition is clear:
- OEMs gain simplified compliance and verified sustainability credentials.
- Suppliers protect their IP and efficiently meet customer transparency demands.
Underpinning the business model is the expectation that regulations will drive demand. The EU’s Battery Regulation, for instance, mandates battery passports from 2027, and even before that, requires carbon footprint disclosures by 2025. Circularise’s platform effectively operationalises these requirements. As compliance deadlines near, companies are more likely to subscribe rather than risk penalties or delays by developing in-house tools. Circularise positions itself as a ready-to-go compliance solution with the added benefits of supply chain visibility and efficiency.
Key challenges
Circularise operates a B2B software-as-a-service (SaaS) business model centred on its traceability platform. The company offers software subscriptions or licensing to enterprises – typically starting with large OEMs, battery manufacturers, or material suppliers who serve as the entry points to a supply chain.
Despite its strong value proposition, Circularise encounters significant hurdles, primarily stemming from corporate reluctance and trust issues. Companies often fear losing their competitive advantage by revealing proprietary data, leading to hesitation in joining transparent supply chain initiatives.
Navigating evolving and complex regulations presents another challenge. With the EU Battery Regulation finalising specific technical standards and other jurisdictions introducing their own mandates, Circularise must continuously adapt its platform to align with these evolving regulations and translate them into actionable software solutions.
Also, Integration into existing industry workflows further complicates matters. Companies already use some extensive systems, and adding another tool requires careful integration to avoid duplication and ensure data accuracy. Circularise addresses this through APIs and integration services but must continually support standardised data formatting and third-party verification.
Additionally, the competitive landscape is intensifying, with various players- from blockchain startups to traditional compliance providers -entering the digital product passport market. Circularise differentiates itself with its unique decentralised blockchain approach and patented cryptographic techniques. However, establishing clear market superiority and convincing stakeholders to opt for their specialised platform over more established solutions remains an ongoing challenge.
Summarising the gravity of some of these challenges, Teresa emphasised during the interview:
Only about 15% of companies have insights into their own supply chain beyond the tier one suppliers.
- Teresa Oberhauser
Future outlook: new horizons for Circularise?
Circularise operates a B2B software-as-a-service (SaaS) business model centred on its traceability platform. The company offers software subscriptions or licensing to enterprises – typically starting with large OEMs, battery manufacturers, or material suppliers who serve as the entry points to a supply chain.
Scaling for EU Battery Passport Mandate
As the 2027 EU deadline for battery passports approaches, Circularise is preparing to deploy its solution at scale. The company is actively engaging with automotive OEMs and battery makers across Europe, ensuring its platform meets final EU specifications. Circularise’s involvement with the Global Battery Alliance (GBA), including its participation in the Battery Passport Program, is a strategic move to influence the standards for battery passports. By collaborating with over 100 industry players, Circularise ensures its solution is aligned with global regulatory expectations and is already helping shape industry standards.
Broadening Industry Reach
The Circularise platform is not limited to batteries. With a history of traceability in plastics and chemicals (e.g., the Marubeni and J-CEP plastics traceability project), Circularise plans to extend its technology to industries such as electronics, textiles, and other high-impact sectors. As the EU’s Digital Product Passport framework evolves, Circularise aims to offer a unified platform for multi-industry clients, streamlining the process for different products and accelerating the circular economy. Key applications could include bio-based content tracking and materials passports in industries like construction.
Enhanced Data Value and Analytics
With the growing volume of data from global supply chains, Circularise is looking to unlock additional value through advanced analytics. The company plans to integrate Life Cycle Assessment (LCA) tools and AI/ML capabilities into its platform to provide deeper insights for its customers. For instance, OEMs could analyse supplier carbon footprints or simulate material impacts on sustainability. These enhanced features, combined with predictive analytics and automated carbon accounting, will improve decision-making.
This case study was elaborated as part of the BatteReverse project by Bax with input from Circularise. The article is part of the Circular Business Cases series, which analyses existing business models for Li-ion batteries.
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