Sun Metalon, a start-up specializing in sustainable metal manufacturing, has successfully raised $21 million in a Series A funding round. This includes a $3.4 million loan facility from Sumitomo Mitsui Banking Corporation, bringing the company’s total capital raised to $30.7 million to date.
Sun Metalon, a nominee for the 2023 3D Printing Industry Start-up of the Year Award, was founded in 2021 and operates in both Japan and the United States. The company aims to decarbonize the metal industry by offering sustainable manufacturing and recycling solutions. This includes a high-speed metal 3D printer, currently under development, which is said to be 500 times faster and 90% cheaper than traditional production methods.
The firm has also developed a proprietary metal heating technology which facilitates low-energy, zero-emissions, and cost-effective recycling of waste metal. Sun Metalon claims its process can reduce energy consumption by 85% compared to existing heating and purifying methods. This technology is driving financial backing and reportedly promises a shorter return on investment than the metal 3D printer.
As such, the company will use its new capital to further develop and integrate its recycling capabilities with more client companies. It hopes to capitalize on the growing global metal recycling market, which is expected to reach $52 trillion amid increasing demand and environmental awareness.
“The metal industry is at a critical juncture, facing dual challenges of decarbonization and the need for a circular supply chain,” explained Sun Metalon’s CEO, Kazuhiko Nishioka. “Our proprietary heating technology addresses both issues by significantly reducing CO2 emissions and enabling efficient metal recycling, all while keeping costs low.”
New funding to decarbonize the metal industry
Sun Metalon’s latest funding effort was supported by backers JIC Venture Growth Investments, HITE Hedge Asset Management, and Sumitomo Corporation Global Metals. Existing investors including The University of Tokyo Edge Capital Partners (UTEC), Globis Capital Partners, D4V, i-nest capital, Scrum Ventures, and Berkeley SkyDeck also participated in the Series A round.
Most of the new capital is set to be leveraged to enhance the company’s novel metal heating solution. Sun Metalon claims it is making notable progress in protecting the intellectual property of its new offering, with core patents having been granted in Japan and the US.
Unveiled at last month’s NADCA 2024 expo, the technology combines electromagnetic energy with a specialized heating booster. The approach reportedly unlocks efficient and rapid heating of waste metal and fluid contaminants without melting the metal itself. This is said to result in a highly cost-efficient metal recycling process requiring minimal energy consumption. Additionally, it does not utilize fossil fuels, enabling zero CO2 emissions when powered by renewable energy sources.
Sun Metalon claims that its recycling process improves overall supply chain security and cost-efficiency by domestically converting waste back into reusable resources. In addition to minimized energy costs, the technology is also said to require lower initial installation costs compared to conventional alternatives.
Space efficiency is highlighted as another key advantage. Based on modular equipment, the novel heating technology can more easily integrate into existing production lines than other recycling methods, the company claims.
These advantages have already drawn interest from industrial customers. Sun Metalon has established partnerships with leading names in the automotive, construction machinery, heavy industry, and steel manufacturing sectors to support decarbonization efforts.
“The future of mobility requires smart utilization of our resources, and multiple companies in the automotive industry already appreciate SUN METALON’s advanced solutions for making mobility and industrial manufacturing better and more sustainable,” commented David A. Levine, Portfolio Manager of HITE Hedge.
“Such aligned innovation fits well with our strategy of Profiting from the Energy Transition. We’re excited to see the future unfold for the company and its partners and customers,” he added.
Earlier this year, the firm announced the expansion of its US plant. This facility now serves as a collaborative hub and a center for its metal manufacturing and recycling operations. With its new funding, Sun Metalon will continue to scale its operations and metal recycling capabilities.
Expanding recycling and upcycling capabilities
Sun Metalon’s technology is tapping into a growing global consensus around the importance of recycling to enhance supply chain security and create circular economics for sustainable manufacturing.
Within the US, similar efforts are being spearheaded by Massachusetts-based material specialist 6K. The company leverages its UniMelt microwave plasma technology to recycle used battery minerals into cathode active materials (CAM). These materials are then sold to domestic battery manufacturers and made into new products, creating a circular battery supply chain.
Last month, the company raised $82 million in a new Series E funding round to scale its battery recycling capabilities, as well as the processing of recycled metal powder. In particular, the capital will fund 6K’s new PlusCAM battery material plant, currently under construction in Jackson, TN.
Across the pond, a recent report published by the National Engineering Policy Centre called on the UK Government to develop and integrated materials strategy based on reusing and recycling critical materials. Led by the Royal Academy of Engineering, the report highlighted the the nation’s fragile supply chain for minerals and metals vital to the UK economy. These include lithium, which is essential for producing batteries, and magnesium, which is used in steel alloy production.
Co-author Mark Enzer stated, “The state of our environment and the supply of items like lithium-ion batteries looks bleak without more recycling and moving away from how we dispose of our old electronic devices.” As such, the reseravhers emphasize the need to establish more recycling facilities that can process process end-of-life machinery like wind turbines. Here, valuable material can be retrieved and recycled as part of a circular supply chain.
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Featured image shows Sun Metalon’s Venus-1, a standalone unit built for localized recycling. Image via Sun Metalon.