WeSort.AI, a deep-tech startup, has raised €10 million to expand its AI-powered sorting technology designed to recover critical raw materials from waste streams.
The funding round includes backing from Infinity Recycling, Green Generation Fund, Vent.io, the SPRIND agency, and additional public sources, with support from BayStartUP’s investor network. The company aims to strengthen its market presence and contribute to Europe’s efforts to secure access to essential raw materials.
What The Company Does
Founded in 2021, WeSort.AI develops artificial intelligence-based systems for the recycling industry, focusing on identifying and separating valuable materials within mixed waste streams. Its technology uses advanced sensors and AI-driven analysis to detect items such as electrical devices, batteries, and components containing critical raw materials.
These materials, including lithium, cobalt, and rare earth elements, are often lost in conventional waste processing systems. WeSort.AI’s solution enables recycling facilities to extract these resources more efficiently, improving both material recovery rates and operational safety.
A central product in the company’s portfolio is its Battery.Sort system, which identifies incorrectly disposed lithium batteries and electronic devices. By detecting these items early in the sorting process, the system reduces fire risks in recycling facilities and improves the quality of recovered materials.
The technology has been deployed since 2024 at waste management companies including KORN Recycling and PreZero, part of the Schwarz Group.
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Market Context / Industry Background
The recovery of critical raw materials has become a strategic priority in Europe, driven by increasing demand for components used in batteries, electronics, and renewable energy systems. These materials are essential for industries such as electric mobility and clean energy, yet supply chains remain highly dependent on imports.
Currently, Europe relies heavily on rare earth materials from China, lithium from Chile, and cobalt from African countries. This dependency has raised concerns around supply chain resilience and geopolitical risk.
The European Union has introduced the Critical Raw Materials Act to address these challenges, setting targets to increase domestic sourcing and reduce reliance on external suppliers. Recycling and urban mining are expected to play a key role in achieving these objectives.
However, inefficiencies in current waste management systems present a significant barrier. The company estimates that more than half of discarded electrical appliances and batteries are not processed through specialized recycling channels. Instead, they end up in general waste streams, leading to both safety risks and the loss of valuable materials.
AI-driven sorting technologies are emerging as a solution to improve recovery rates while addressing operational risks such as fires caused by improperly disposed batteries.
Founder / Investor Commentary
Co-founders Nathanael Laier and Johannes Laier emphasized the broader implications of improving material recovery through recycling.
“By recovering previously unused critical raw materials from waste, we are tapping into a previously untapped ‘urban mine’ and contributing directly to the implementation of EU requirements,” they said.
Investors also highlighted the relevance of the company’s approach within the circular economy. Nicky van ’t Hof from Infinity Recycling said the investment reflects confidence in both the business model and the technology.
“By preventing fires and recovering critical raw materials, WeSort.AI solves one of the industry’s biggest problems,” she said, adding that the investment aligns with efforts to expand circular economy solutions in Europe.
Growth Plans / Use Of Funds
The €10 million funding will be used to scale WeSort.AI’s technology deployment across additional recycling facilities and to further develop its AI capabilities. The company aims to increase adoption of its sorting systems across Europe, positioning itself as a key provider of infrastructure for critical raw material recovery.
Expanding its market footprint will also support Europe’s broader objective of strengthening raw material sovereignty by increasing the share of domestically recovered resources.
In parallel, the company is expected to continue refining its technology to improve detection accuracy, operational efficiency, and safety outcomes within recycling plants.
About WeSort.AI
WeSort.AI is a German deep tech company developing AI-powered sorting systems for the recycling industry. Founded in 2021 and headquartered in Würzburg, the company focuses on recovering critical raw materials from waste streams while improving plant safety and efficiency. Its technology uses advanced sensors and artificial intelligence to detect and separate valuable materials, supporting circular economy initiatives and reducing reliance on imported resources.
