Plastic recycling company Novoloop has signed an agreement with a leading manufacturer to produce its recycled thermoplastic polyurethane on a commercial scale, TechCrunch has learned exclusively.
This partnership helps Novoloop, based in Menlo Park, move past the challenging “valley of death” that many climate technology startups encounter.
Hardware-focused startups are especially vulnerable during this stage, when they have demonstrated their technology but have yet to generate enough sales revenue.
According to the agreement, Novoloop will provide Huide Science and Technology with a chemical component essential for making thermoplastic polyurethane. Novoloop produces this component, called a polyol, from post-consumer polyethylene waste such as plastic bags, which are notoriously difficult to recycle.
Thermoplastic polyurethanes, or TPUs, are versatile plastics used in products ranging from athletic footwear to medical equipment.
“For this product line, we have essentially established what would be considered a commercial partnership,” Novoloop co-founder and CEO Miranda Wang told TechCrunch.
Currently, Novoloop’s capacity to deliver polyols is limited, Wang explained. Earlier this year, the company launched its demonstration facility in India, which can manufacture tens of tons of polyols annually.
The output from this demonstration plant is enough to support “significant pilot programs,” Wang noted, including one for a footwear brand that will be revealed soon. In the past, Novoloop supplied its Lifecycled material to Swiss shoe company On for the soles of its Cloudprime sneakers.
Wang emphasized that agreements like the one with Huide are crucial for Novoloop’s advancement. “Achieving economies of scale is the biggest challenge to becoming profitable,” she said. “Much of our focus next year will be on finalizing these customer agreements so we can fund the [commercial-scale] production sites.”
Once these deals and the necessary funding are secured, Novoloop anticipates its commercial facility will be operational by early 2028, Wang stated. The initial plant is expected to produce enough polyols to manufacture around 16,000 tons of TPU each year.
“Once we’re able to produce at those volumes, we anticipate reaching price parity with traditional TPUs,” Wang said.
