Amid China’s Tightening Grip, CarbonScape Announces New Demo Plant for Biographite

In a market where European EV and battery makers are already facing critical mineral shortfalls, the International Energy Agency (IEA) has predicted a graphite supply deficit of 777,000 tonnes per year by 2030. Graphite, which makes up 95% of the anode material in lithium-ion (Li-ion) batteries, was cited in the IEA’s Critical Mineral Outlook Report 2024 as the critical  mineral with the highest supply risk score when it comes to geopolitical exposure. All that is about to change.

CarbonScape, a pioneer in sustainable battery materials, has announced its next big step towards commercialisation of biographite, its sustainable substitute for mined or synthetic graphite, by selecting a site in Sunila, Finland, as the location for its global biographite demonstration plant.

Sunila, Finland, will be the site for the new CarbonScape demontration plant development. CARBONSCAPE

This marks an important step for CarbonScape in establishing a European battery supply chain independent of traditional graphite sources, the company says. Furthermore, CarbonScape intends to apply the data generated by the plant to plan and support further expansion in Europe and North America.

The Sunila site, located in Kotka in southern Finland, is owned by Stora Enso, a global leader in renewable materials and one of CarbonScape’s strategic investors. In 2023, Stora Enso closed its pulp production and lignin extraction operations at Sunila and will now lease part of the site area to CarbonScape.

Related:CarbonScape’s Renewable ‘Biographite’ Anode Material Ready to Scale

CarbonScape is currently advancing its engineering study for the demonstration plant, as well as its first commercial plant. The aim is to start construction of the demonstration plant next year and begin sample production in 2026. 

Enabling a more sustainable battery industry

CarbonScape is based in New Zealand and calls itself a bioeconomy company, having developed a low-cost and climate friendly biographite made from wood biomass. This material innovation has been engineered to replace mined or fossil-based synthetic graphite in lithium-ion batteries across the globe, 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."

Strategic partnership with Stora Enso

Selecting Stora Enso's Sunila site comes a year after the forest industry giant became a shareholder in CarbonScape. This collaboration combines CarbonScape's cutting-edge technology with Stora Enso's expertise in bio-based applications from renewable materials.

Related:Natural and Synthetic Graphite in Battery Manufacturing

Biographite, a synthetic graphite created from forestry industry byproducts by New Zealand-based CarbonScape. CARBONSCAPE

Juuso Konttinen, Stora Enso’s senior vice president of biomaterials growth businesses called hosting CarbonScape's demonstration plant at Sunila a perfect alignment of the two companies’ shared vision for advancing sustainable battery technologies amid 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,” he commented.

Since 2018, CarbonScape has been optimizing 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 commercialization.

The demonstration plant will have three main purposes:

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 source is of critical importance for the EU and US. By 2030, more than 90% of the world's battery-grade graphite is predicted to come from China, creating potential supply chain vulnerabilities for the growing electric vehicle and renewable energy storage industries worldwide.

CarbonScape says its biographite offers a price-competitive solution that offers both performance and environmental superiority, while enhancing energy security by enabling localized production of this essential material. This aligns with recent policy initiatives such as the European Critical Raw Materials Act (CRMA) and similar measures in North America aimed at securing strategic battery materials.