Estonian startup UP Catalyst, a spin-off of the University of Tartu, has successfully raised €4 million in funding. The funds will be utilized to scale up the production of carbon materials and graphite directly derived from carbon dioxide emissions. The aim is to offer European battery manufacturers a sustainable source of raw materials, particularly in response to China's graphite export curbs, adding urgency to the search for local alternatives.
Europe currently relies on graphite imports for 99% of its supply, making the funding crucial for UP Catalyst. The company plans to build an industrial pilot reactor capable of processing 100 tons of carbon dioxide annually and producing 27 tons of carbon materials. This move positions UP Catalyst as one of the world's largest providers of green graphite.
The funding round was led by Berlin-based climate tech VC fund Extantia, with support from Estonia's state fund SmartCap and existing investors, including Sunly, Little Green Fund, Scottish Baltic Invest, and UniTartu Ventures.
The investment is instrumental in UP Catalyst's plan to scale up production capabilities. The new reactor, ten times larger than the current setup, is a significant milestone before the construction of a full-scale industrial reactor unit.
UP Catalyst, closely linked with the University of Tartu, is expected to play a transformative role in the European battery landscape. By replacing fossil-based graphite with green graphite, the battery anodes can become carbon dioxide-negative, contributing to avoiding substantial carbon dioxide emissions. The startup's collaboration with the University of Tartu ensures the broader development of this scientific field in Estonia.
As global demand for graphite is predicted to surpass supply, creating an estimated 700,000-ton annual deficit by 2030, UP Catalyst's green graphite production can have a significant environmental impact, potentially avoiding 118.7 megatons of carbon dioxide emissions annually by 2030. The company's success is underscored by winning the title of the University of Tartu's Research-Intensive Spin-off of the Year in 2022.
