This Italian Startup Just Found a Way to Extract Millions in Metals From Wastewater

Jan de Vries · 2026-07-21

Most people look at industrial wastewater and see a disposal problem. But one Italian company sees something entirely different: a goldmine. Circular Materials, a scale-up based in Cadoneghe, just secured $12.9 million (€11.8 million) in Simple Agreement for Future Equity (SAFE) financing. The investors include CDP Venture Capital, the European Innovation Council Fund, EIT RawMaterials, 360 Capital, Corbites, and Lumar S.r.l. The deal was backed by law firm BonelliErede. ### Why Wastewater Is Suddenly Valuable Here's the thing about industrial wastewater: it's loaded with dissolved metals. Industries like metal surface treatment, electroplating, battery recycling, and chemical manufacturing all produce it. Traditional treatment methods just remove the contaminants and call it a day. But Circular Materials figured out how to do something smarter. "Europe faces a dual challenge of securing access to critical raw materials while reducing the environmental impact of industrial processes," said Marco Bersani, CEO of Circular Materials. "Wastewater is not simply waste, but a highly valuable and often untapped resource." ### The Tech Behind the Magic Founded in 2019, the company developed a patented technology called Supercritical Water Precipitation (SWaP). It's designed to recover more than 99% of dissolved metals from complex wastewater streams. And it doesn't just pull out the metals — it also reduces the hazardous sludge that normally comes with treatment. Think of it like panning for gold, but instead of a river, you're processing industrial runoff. The recovered materials can go right back into supply chains. ### How It Actually Works Circular Materials doesn't just treat wastewater and forget about it. Their model integrates treatment with raw material recovery and valorization. In some cases, they send the recovered metals back to the same customer. In others, they sell them to different industries. - **Recovery rate:** Over 99% of dissolved metals - **Waste reduction:** Less hazardous sludge compared to conventional methods - **End result:** Secondary raw materials that re-enter industrial supply chains ### Real-World Progress The company already operates its first industrial facility in Padua. Earlier this year, that facility achieved End-of-Waste status under the EU Waste Framework Directive. That's a big deal — it means the recovered materials are officially classified as secondary raw materials, not waste. In 2025, Circular Materials was also selected for the RECOVER-IT project under the European Critical Raw Materials Act (CRMA). This highlights how important domestic resource recovery is becoming for European supply chain resilience. ### What's Next? The company plans to use this fresh capital to move from industrial validation toward broader commercial deployment. The main focus is building their next Circular Materials Hub in Ferrara, which will greatly increase treatment capacity. They'll also strengthen operational capabilities and continue scaling up the SWaP technology. "Our focus remains on building the infrastructure needed to recover valuable materials, support industrial competitiveness, and contribute to more circular supply chains," Bersani added. ### Why This Matters for the US You might be wondering why a European startup story matters here. The answer is simple: the same challenges exist everywhere. Critical raw materials are becoming harder to source, and industries across the US face similar wastewater issues. If Circular Materials' technology proves scalable, it could set a precedent for how industrial waste is managed globally. This isn't just about being environmentally friendly — it's about economic resilience. Every pound of metal recovered from wastewater is a pound that doesn't need to be mined or imported.