The investment comes at a critical time, following China's decision to limit graphite exports, heightening the need for local alternatives for battery raw materials. This is especially relevant for Europe, which relies on imports for 99% of its graphite needs. The funding will enable UP Catalyst to construct an industrial pilot reactor with the capacity to process 100 tonnes of CO2 annually, producing 27 tonnes of carbon materials. This positions UP Catalyst as the world’s largest producer of green graphite.

The funding round was spearheaded by Berlin-based climate tech VC fund Extantia, and supported by Estonia's state fund SmartCap, along with continued backing from existing investors Sunly, Little Green Fund, Scottish Baltic Invest, and UniTartu Ventures. This investment is key to scaling up UP Catalyst’s production capabilities. The new reactor will boast a production capacity ten times greater than the current setup, a crucial step before building a full-scale industrial reactor unit.

Yair Reem, Partner at Extantia, shared enthusiasm for the partnership: "UP Catalyst is redefining the conventional approach to graphite production by turning away from environmentally detrimental fossil fuel methods. We perceive China's export restrictions not as a barrier but as a catalyst for European green innovation. UP Catalyst stands at the forefront, ready to deliver a dependable, price-competitive and sustainable solution to address the growing global demand for battery manufacturing."

With an expected global deficit of 700,000 tonnes of graphite annually by 2030, UP Catalyst is poised to revolutionise the European battery sector. Their green graphite will transform battery anodes to be CO2 negative, potentially helping to avoid 118.7 megatons of CO2 emissions annually by 2030.

Gary Urb, CEO of UP Catalyst, expressed his excitement about the investment: "We are thrilled to have secured this funding, bringing us one step closer to empowering 4 million car batteries with graphite sourced from CO2 emissions by 2030. This carbon supply can cover approximately 20% of the EV battery market's yearly carbon need in Europe."

With robust support from both new and existing investors, UP Catalyst is well-positioned to accelerate its technological advancements, leading Europe towards a more sustainable and self-sufficient future in carbon materials and graphite.