# Blockchain-based Supply Chain Monitoring for Circular Economy

> Circularise develops blockchain solutions for traceability and transparency in industrial supply chains for the circular economy. The company conducts several pilot projects, including a three-year innovation project for rare earth sustainability since 2022 and tests of digital product passports for Scope 3 emissions reporting with SABIC. The blockchain technology uses zero-knowledge proofs to ensure both transparency and data protection.

**Sector:** Tertiary sector · **Industry:** Waste management and recycling · **Organisation:** Circularise mit Gastronomiepartnern · **Maturity level:** Pilot

Canonical URL: https://www.sapientblock.com/en/use-cases/circularise-seltene-erden-kreislauf-halten

## Documentation status

- **Project status:** Pilot
- **Evidence:** Evidence high
- **Editorial review:** Ufuk Avci, 15 April 2026

## Description

Circularise develops blockchain infrastructure specifically for critical raw materials in circular economy processes. The public blockchain structurally prevents double use of sustainability proofs. For rare earths — cobalt, lithium, nickel, graphite, rare earths for magnets — traceability is particularly critical, as the EU Battery Regulation requires battery passports with provenance proof from 2024.

Circularise has established several industry partnerships for the circular economy of critical raw materials: Circularise cooperates with SABIC on Scope 3 blockchain tracking — emissions along the supply chain are traceably documented on the blockchain. With EuPC (European Plastics Converters) and Covestro, a digital platform for plastic recycling monitoring in Europe was developed, measuring how much plastic is actually recycled. In the ISCC pilot (September 2022), Circularise demonstrated how mass balance credits for recycled and bio-based materials can be digitally transferred. For the EU Battery Regulation, Circularise is positioned as a software partner for battery passports: cobalt, lithium, nickel, and graphite must be documented with provenance and CO₂ footprint above certain thresholds. The Circularise system tracks these materials without disclosing sensitive business data of suppliers — through cryptographically secured selective disclosure.

## Benefits

- Companies can measurably achieve their sustainability goals and open new markets for recycled materials.
- Blockchain technology enables seamless traceability of materials along the entire supply chain.
- Zero-knowledge proofs ensure transparency while simultaneously protecting trade secrets.
- Automated compliance reports reduce manual effort and improve data quality.
- Automated data collection and reporting reduce repetitive manual tasks for compliance teams.

## Challenges

- The high technical complexity requires specialised expertise and corresponding investments in technology and personnel.
- Implementation requires close collaboration of all supply chain partners, which is challenging to coordinate.
- Integration into existing ERP systems and business processes can be complex and time-consuming.
- Employees need to acquire new digital skills in handling blockchain technologies.

## Technology foundation

Circularise uses a blockchain platform with zero-knowledge proofs that enables verification of supply chain data without revealing sensitive business information. This technology is particularly suitable for industrial applications as it creates transparency for compliance requirements while protecting trade secrets.

## Sources

- [Circularise partners with 4 organisations to develop a blockchain-based circular system for assessing rare earth sustainability](https://www.circularise.com/press-releases/circularise-partners-with-4-organisations-to-develop-a-blockchain-based-circular-system-for-assessing-rare-earth-sustainability)
- [Circularise collaborates with SABIC on Scope 3 blockchain tracking](https://www.circularise.com/press-releases/circularise-collaborates-with-sabic-on-scope-3-blockchain-tracking)
- [EuPC und Circularise Plastics kooperieren bei der Weiterentwicklung der digitalen Plattform](https://www.covestro.com/press/de/eupc-und-circularise-plastics-kooperieren-bei-der-weiterentwicklung-der-digitalen-plattform-zur-ueberwachung-der-rate-von-kunststoff-recycling-aktivitaeten-in-europa/)
- [ISCC und Circularise testen gemeinsam mit 10 Unternehmen eine Blockchain-Technologie](https://www.neste.com/de-de/news/iscc-und-circularise-testen-gemeinsam-mit-10-unternehmen-darunter-auch-neste-eine-blockchain-technologie-zur-ergaenzung-der-massenbilanz-zertifizierung)