Partnership boosts bio-based graphite material deployment

Battery manufacturer Contemporary Amperex Technology Co Limited (CATL) has entered into a strategic investment partnership with CarbonScape Ltd, a New Zealand-founded developer of sustainable bio-based graphite materials for battery applications.

The collaboration combines CarbonScape’s biographite technology with CATL’s experience in industrialisation, manufacturing and large-scale deployment.

The transaction provides CATL with board representation, and positions it as an important industrialisation partner in the further development and scaling of CarbonScape’s technology.

CarbonScape has developed a proprietary process that converts forestry by-products into battery-grade graphite suitable for lithium-ion battery applications.

Through this collaboration, CATL will contribute its expertise in industrial scale-up, manufacturing operations, process optimisation, and commercialisation.

“This partnership is about far more than capital. It provides access to CATL’s unparalleled expertise in scaling and mass production, world-class facilities, global market reach and a clear pathway to gigafactory-scale deployment,” said Ivan Williams, CEO of CarbonScape.

“It validates the strategic importance of biographite in the future of electrification and uniquely aligns technical de-risking with route-to-market readiness. Together, we aim to bring commercial biographite production online by the end of the decade.”

The multi-year collaboration spans both technical and commercial objectives:

• Technology de-risking and scale-up
  
  CarbonScape and CATL will validate the technology at demonstration scale at CATL facilities, and refine the process in preparation for full-scale commercial plants.
   
• Strategic investment and financing
  
  CATL, along with Lochpine Capital, is now a shareholder in CarbonScape and provides strategic support to the company. Their investment helps fund technology de-risking and scale-up, strengthening CarbonScape’s position for future commercial deployment. The partnership structure includes equity-based incentives aligned with the successful commercial deployment of CarbonScape’s technology.
   

Oscar Luo, Executive President, Global Head of BD, Licensing & Venture Management at CATL, noted, “Sustainable innovation across the battery value chain is essential to advancing the global energy transition.

“CarbonScape’s technology introduces a novel method for producing battery-grade graphite from renewable resources, embodying a true breakthrough in material science.

“We are excited to support this pioneering effort — one that aligns with the vision of a zero-carbon future by redefining how critical materials are sourced and produced.

“This is not just about scaling a process; it’s about catalysing a shift toward fundamentally cleaner and smarter energy solutions.”

Global demand for battery-grade graphite is expected to grow approximately sixfold between 2025 and 2040, driven by the rapid expansion of electric vehicles and energy storage. Today, more than 75% of graphite used in batteries comes from an oil-based feedstock.

CarbonScape’s technology addresses both challenges by enabling the production of battery-grade graphite from widely available forestry by-products. This approach supports the development of regional supply chains while helping battery and automotive manufacturers meet increasingly stringent sustainability and regulatory requirements.

Image credit: iStock.com/BJP7images. Image is for illustrative purposes only.