Novoloop just crossed a critical milestone that could reshape plastic recycling economics. The Menlo Park startup secured a manufacturing deal with Huide Science and Technology to produce its Lifecycled TPU material at commercial scale, marking a rare escape from the climate tech "valley of death" that kills most hardware startups before they reach profitability.
Novoloop is betting big that the world's plastic problem can become its business solution. The climate startup just landed a manufacturing partnership with Huide Science and Technology that could finally make recycled plastic economics work at scale.
The deal represents something rare in climate tech - a clear path from lab bench to factory floor. "For this product line, we have essentially achieved what would be the commercial relationship," CEO Miranda Wang told TechCrunch in an exclusive interview.
What makes this interesting isn't just another recycling story. Novoloop tackles one of the nastiest waste streams - plastic bags and films that traditional recyclers can't process. The company breaks down post-consumer polyethylene into polyols, chemical building blocks that become thermoplastic polyurethane (TPU). Think running shoe soles, medical tubing, and flexible electronics - materials worth billions annually.
The manufacturing math is finally starting to work. Novoloop's demonstration plant in India, commissioned earlier this year, cranks out tens of tons annually - enough for "major pilot projects" according to Wang. That includes an upcoming footwear customer reveal and builds on their existing deal with Swiss running brand On, which used Novoloop's Lifecycled material in its Cloudprime sneaker treads.
But here's the real breakthrough - scale economics. "The biggest hurdle to profitability is economies of scale," Wang explained. Once their commercial facility launches in early 2028, Novoloop expects to produce 16,000 tons of TPU annually. At those volumes, the recycled material hits price parity with virgin plastic.
That timeline matters because it puts Novoloop ahead of regulatory pressure building worldwide. The EU's plastic waste directives and similar policies in Asia are creating demand for recycled content that traditional recyclers can't meet. Companies need alternatives to virgin plastic, and they need them to cost the same.
