When dual use technologies meet the circular economy: a strategic opportunity for Europe

Dual‑use products, meaning solutions that can be used for both civilian and military purposes, are becoming increasingly important from a strategic perspective across Europe. At the same time, the circular economy is gaining relevance in industrial as well as security policy. When these fields meet, they create opportunities to strengthen industrial resilience by reducing dependence on critical raw materials, extending system lifetimes, and improving repairability across sectors.

This approach, where durability and resource efficiency go hand in hand, aligns with the direction of EU dual-use policy and ongoing defence related circularity discussions. It also reflects a broader shift in EU industrial policy: strengthening resilience by making systems less dependent on vulnerable supply chains and more maintainable throughout their lifecycle.

Circularity strengthens the strategic value of dual-use technologies by improving supply security and reducing reliance on critical materials, which directly supports EU initiatives such as the Critical Raw Materials Act, and the Battery Regulation. Strategic raw materials, meaning particularly important minerals and metals needed for technologies and industries critical to society, are central in this context. Many dual-use systems depend on resources with high economic and security relevance. Circular design principles, such as modularity and repairability help retain these materials within the European economy, strengthening resilience across both civilian and defence supply chains.

Why dual-use matters for the circular economy

Traditionally, many dual-use technologies emerged from military innovation and later found civilian applications, such as satellite navigation systems. Nowadays the concept is broader, and it is increasingly recognised that sustainability and security are interconnected goals.

In practice, relevant areas range from energy storage and batteries to recycling and substitution of critical raw materials, as well as electronics repair, remanufacturing, and broader lifecycle management. Technical textiles and protective materials are also getting more attention, alongside drones, robotics, and increasingly modular systems.

Connecting these sectors represents a shift in where value is created, moving beyond production to focus on how long products and materials remain in use and how efficiently their lifecycle is managed.

Circular business opportunities

1. Batteries and energy storage
   Batteries, energy storage, and second‑life solutions form what is likely the strongest single‑market area overall within the EU for circular economy and dual use. The energy storage market is expanding on civilian and defence sides, driven by new regulation and fast-growing demand. The strongest opportunities lie in second‑life validation, battery management software, testing, traceability and material recovery, driven by a strong circular‑economy logic where value comes from managing the entire battery lifecycle. In this context, the TREASoURcE project focuses on developing the use of second‑life electric vehicle batteries for energy storage applications.
2. Critical raw materials
   Recycling and substitution have become part of Europe’s security strategy. Technologies that recover, refine, or replace materials like cobalt, lithium, or rare earths support both industrial and defence supply chains. Scalable recycling, high-purity recovery, and transparent data on material flows are important success factors.
3. Electronics repair and remanufacturing
   Keeping essential systems operational instead of replacing them is cost-efficient as well as sustainable. Life extension as a service includes diagnostics, maintenance, certified spare parts, and software lifecycle tools. This model can outperform traditional hardware sales by offering reliability, data continuity, and resilience. It also aligns well with the new EU eco-design requirements, especially in safety-critical systems where acquiring new equipment is expensive and supply chain risk is high.
4. Technical textiles and protective materials
   Protective clothing and industrial textiles need high performance and sustainability. Companies that offer take-back schemes, material passports, or fibre-level recycling are well positioned for future procurement trends. The European Defence Agency’s new circular economy projects also show clear growth potential in this field.
5. Drones, robotics, and autonomous systems
   Although the dual-use aspect is clear in this area, the circular economy perspective is often overlooked, despite its relevance. Circularity in drones, robotics and other autonomous systems means modular design, easy repair, and upgradeable software. Businesses that manage fleets, maintenance, and updates can capture more value than those that only sell devices. Combining dual-use functionality with lifecycle-based services opens new opportunities in civilian and defence markets.

Four RDI priorities for sustainable dual-use innovation

Developing circular dual-use technologies requires active research, development, and innovation cooperation across sectors. Key focus areas include:

1. Design for circularity
   Products must be built for disassembly, maintenance, and safe reuse. Early design decisions determine most environmental and lifecycle outcomes.
2. Data and traceability
   Reliable digital information about materials, components, and performance is essential. Product passports, monitoring tools, and cloud-based tracking systems will become standard practice.
3. Certification and compliance
   In dual-use contexts, solutions must meet strict safety, reliability, and export control standards. Future frameworks for certifying remanufactured components will be crucial.
4. Testing and piloting in real environments
   Technologies need to be verified in realistic conditions. European programs such as EDA’s IF CEED and NATO’s DIANA already provide platforms for proof-of-concept and early demonstrations.

Circularity as a strategic advantage

Circularity is rapidly becoming a strategic element of industrial resilience. Lower waste and emissions are only one aspect, as circular systems can also reduce supply risks, keep costs more stable, and support the long-term availability of technology and materials.

For companies, this transformation brings opportunities to develop service-based and data-driven business models around lifecycle management. Demand will come from sustainability as well as from security, energy, and industrial strategies across Europe.

The most competitive companies of the next decade could be those that know how to extend the life of assets, recover value, and build reliability into their technologies.

CLIC’s role: building resilience with circular solutions

From CLIC Innovation’s perspective, the intersection of dual-use and circular economy should get more attention across industrial ecosystems. Potential business cases are emerging in three areas:

• Life extension: repair, upgrade, and remanufacturing services
• Resource security: recycling, substitution, and traceability of critical materials
• Circular energy systems: second-life use and full lifecycle control of batteries

These themes combine commercial opportunity with strong EU policy momentum. CLIC Innovation brings together companies and research partners developing circularity to explore dual-use opportunities and join its collaboration platforms to co-create sustainable and secure technologies.

Join the conversation on dual-use

CLIC invites you to take part in the Circular Economy Forum on 25 May, exploring the theme of dual‑use technologies and the circular economy.

Interested in joining the event? Get in touch: anna.tenhunen-lunkka@clicinnovation.fi

For more information