UP Catalyst raises 1.5 million euros to make battery carbon from CO2

Estonian nanotechnology firm UP Catalyst secured 1.5 million euros to produce high-purity carbon materials from CO2 for batteries, reducing reliance on graphite imports of up to 500,000 tonnes annually in Europe. CO2-to-carbon supply chains could inform India's battery materials and critical minerals strategy.

UP Catalyst, a Tallinn-based nanotechnology company, secured 1.5 million euros for a two-year project, financially supported by EAS-Enterprise Estonia, to generate high-purity carbon from CO2 for battery applications. It uses the Molten Salt Carbon Capture and Electrochemical Transformation (MSCC-ET) method to create carbon nanomaterials and graphite. The project runs from October 1, 2023 to September 30, 2025, targeting parts-per-million impurity levels and aiming to secure the world's first CO2-negative supply of battery-grade carbon.

The development affects the battery and electric vehicle supply chain, where graphite constitutes half of an EV battery's weight and is critical to the anode. Europe heavily depends on graphite imports reaching up to 500,000 tonnes annually, posing supply risk. UP Catalyst's process also produces carbon nanotubes used in battery electrodes, offering faster charging, higher energy density and improved durability. The R&D approach, inspired by the aluminium industry, prevents vessel corrosion to achieve low-impurity, top-tier energy storage materials.

Battery manufacturers and EV supply chain players should monitor the project's September 30, 2025 conclusion and UP Catalyst's plan to establish its first industrial unit in subsequent phases. Indian battery and critical minerals stakeholders facing graphite import dependence can track whether CO2-derived, CO2-negative battery carbon proves commercially viable at scale. Watching the technology scale-up offers insight into diversifying anode material sourcing away from concentrated import reliance toward domestic, lower-emission production routes.

Key figure — Funding secured: 1.5 million euros over a two-year project