UP Catalyst plans 20,000-tonne battery-grade graphite facility in Finland using CO₂ molten salt electrolysis

Estonian deep-tech firm UP Catalyst has announced plans to develop a large-scale production facility for battery-grade graphite and carbon nanotubes in Oulu, Finland. The proposed plant aims to produce around 20,000 tonnes annually using an innovative process that converts captured CO₂ emissions into valuable carbon materials. Operations are targeted to begin by 2031, marking a significant step towards sustainable battery material supply within Europe. The facility will utilise UP Catalyst’s Molten Salt Carbon Capture and Electrochemical Transformation technology, which processes CO₂ captured from Oulun Energia’s energy operations. Instead of merely storing or releasing carbon dioxide, this method transforms it into solid carbon forms essential for battery manufacturing. The project benefits from a Strategic Project designation under the EU Critical Raw Materials Act, designed to streamline permitting and funding for key materials critical to Europe’s battery supply chain, which currently relies heavily on imports. Collaboration between UP Catalyst and Oulun Energia will focus on integrating industrial processes and energy infrastructure, leveraging Finland’s clean energy grid and established industrial ecosystem. The location within Oulu Industrial Park is seen as advantageous due to its access to renewable energy and existing manufacturing capabilities. Early financial backing has been secured through a €47 million tax credit from Business Finland, supporting the development of this climate-neutral investment. UP Catalyst’s CEO, Rait Maasikas, highlighted Finland’s strengths as a foundation for scaling up industrial production, citing the country’s reliable and competitive clean energy supply alongside robust industrial infrastructure. The project exemplifies the growing emphasis on circular carbon economies and European self-sufficiency in critical battery materials. If successful, the facility could play a pivotal role in reducing the environmental impact of battery production while strengthening the continent’s strategic raw material independence.