Battery manufacturer, Contemporary Amperex Technology Co., Limited (CATL), has entered into a strategic investment partnership with CarbonScape.
The collaboration combines CarbonScape’s innovative biographite technology with CATL’s experience in industrialisation, manufacturing excellence, and large-scale deployment.
Demand for battery-grade graphite is growing
The rapid growth of electric mobility and energy storage is expected to drive significant demand for battery-grade graphite. CarbonScape has developed a proprietary process that converts forestry by-products into battery-grade graphite suitable for lithium-ion battery applications. Through this collaboration, CATL will contribute its expertise in industrial scale-up, manufacturing operations, process optimisation, and commercialisation.
Ivan Williams, CEO of CarbonScape, commented: “This partnership is about far more than capital. It provides access to CATL’s unparalleled expertise in scaling and mass production, world-class facilities, global market reach, and a clear pathway to gigafactory-scale deployment. It validates the strategic importance of biographite in the future of electrification and uniquely aligns technical de-risking with route-to-market readiness. Together, we aim to bring commercial biographite production online by the end of the decade.”
Oscar Luo, Executive President, Global Head of BD, Licensing & Venture Management at CATL, noted: “Sustainable innovation across the battery value chain is essential to advancing the global energy transition. CarbonScape’s technology introduces a novel method for producing battery-grade graphite from renewable resources, embodying a true breakthrough in material science. We are excited to support this pioneering effort – one that aligns with the vision of a zero-carbon future by redefining how critical materials are sourced and produced. This is not just about scaling a process; it’s about catalysing a shift toward fundamentally cleaner and smarter energy solutions.”
Vincent Ledoux-Pedailles, Chief Commercial Officer of CarbonScape, added: “Graphite is the forgotten giant of the battery supply chain – the single largest material in every EV battery by volume, yet the majority of that supply is oil-based. What we have built at CarbonScape is the only proven pathway to produce battery-grade graphite from forestry residues, at target cost parity with conventional graphite and with a carbon-negative footprint. CATL’s investment is the most powerful validation this technology could receive.”
Blake Niu, Lead Partner at Lochpine Capital, stated: “Lochpine Capital is committed to supporting innovative technologies relevant to the global energy transition. CarbonScape has developed a differentiated approach to graphite production using forestry by-products, and we are pleased to support the company alongside CATL as it advances its technology and commercialisation plans.”
Juuso Konttinen, SVP, Head of Growth Business Unit at Stora Enso (CarbonScape’s existing strategic shareholder) emphasised: “Bringing a sustainable anode material to market at scale takes the right partners. CATL’s investment, alongside Stora Enso’s continued support, positions CarbonScape exactly to do that by building an integrated value chain from sustainably managed forests all the way to the batteries powering the energy transition”.
What is graphite?
Graphite is the single largest material component in lithium-ion batteries by volume, representing up to 50% of the battery cell. Each electric vehicle contains roughly 50–100 kg of graphite, more than lithium, nickel, and cobalt, making it one of the most critical materials for the energy transition.
Global demand for battery-grade graphite is expected to grow approximately six-fold between 2025 and 2040, driven by the rapid expansion of electric vehicles and energy storage. Meeting this demand will require substantial new production capacity and the development of alternative, more sustainable supply sources that are less carbon intensive than synthetic graphite but still cost competitive.
Today more than 75% of graphite used in batteries comes from an oil-based feedstock. CarbonScape’s technology addresses both challenges by enabling the production of battery-grade graphite from widely available forestry by-products. This approach supports the development of regional supply chains while helping battery and automotive manufacturers meet increasingly stringent sustainability and regulatory requirements.
For more information, visit www.carbonscape.com and www.catl.com
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