Critical mineral alternative to address British industry challenges

CarbonScape – the first-to-market producer of biographite, a carbon-negative alternative to critical mineral graphite, which makes up 42% of lithium-ion batteries – is set for world-wide expansion now it has selected the location of its global demonstration plant, at strategic partner Stora Enso’s Sunila site in Finland.
 

Key elements of the story:

• Graphite supply faces substantial geopolitical risks, with China controlling 95% of battery-grade graphite. Beijing imposed controls on graphite exports in December 2023, causing shipments to plunge by 91%.

• The British Government developed the UK’s Critical Minerals Strategy to address this, making our supply chains more resilient through diversification.

• CarbonScape is announcing its global demonstrator plant in Sunila, Finland, which will enable the company to scale biographite production within Europe, offering a much-needed way to diversify supply, while helping establish a battery supply chain independent of finite mined and fossil fuel-based graphite sources.

• Resilient graphite supply chains will be essential for the UK’s economy – by 2028, over half of the 1.1 million cars made in Britain will be electric.

• The company can sustainably produce biographite from low-cost forestry industry by-products (woodchips).

• CarbonScape is also launching a funding round to expand globally at pace.

Revolutionising the Battery Industry

CarbonScape, a New Zealand-based bioeconomy company, has developed a low cost and carbon-negative biographite made from wood biomass. This revolutionary material is engineered to replace mined or fossil-based synthetic graphite in lithium-ion batteries, addressing critical supply chain and sustainability challenges in the rapidly growing electric vehicle and energy storage sectors.

Ivan Williams, CEO of CarbonScape, commented: “Our partnership with Stora Enso and the decision to locate our demonstration plant in Sunila underscore the global potential of our technology. By producing biographite from sustainable wood sources, we’re not just creating a new supply chain – we’re redefining what’s possible in battery technology.”

A Strategic Partnership for a Sustainable Future

The selection of Stora Enso’s Sunila site comes a year after the forest industry leader became a shareholder in CarbonScape. This collaboration combines CarbonScape’s cutting-edge technology with Stora Enso’s expertise in bio-based innovations from renewable materials.

Juuso Konttinen, Senior Vice President of Biomaterials Growth Businesses at Stora Enso, stated: Hosting CarbonScape’s demonstration plant at our Sunila site aligns perfectly with our shared vision for advancing sustainable battery technologies and the shift to renewable materials. This partnership enables us to explore synergies between our plants, driving innovation and strengthening Stora Enso’s leadership in sustainable solutions.”

From Pilot to Commercial Scale

Since 2018, CarbonScape has been optimising its biographite production process at its pilot plant in New Zealand. The new demonstration plant in Sunila represents a significant scaling up of this technology, paving the way for full commercialisation.

The demonstration plant will have three main purposes:

• Produce larger biographite samples for OEMs and battery cell makers and for product qualification purposes

• Train operators and engineers in a large industrial setting

• Getting closer to one of the end markets for CarbonScape: Europe

Global Impact and Market Potential

With graphite comprising up to 42% of the volume of a lithium-ion battery, the development of a sustainable, locally produced alternative is of critical importance. By 2030, over 90% of the world’s battery-grade graphite will come from China, creating potential supply chain vulnerabilities for the growing electric vehicle and renewable energy storage industries.

CarbonScape’s biographite offers a price competitive solution that offer both performance and environmental superiority, while enhancing energy security – enabling localised production of this essential material. This aligns with recent policy initiatives such as the European Critical Raw Materials Act and similar measures in North America aimed at securing strategic battery materials.