UP Catalyst, a Tallinn-based company specialising in transforming industrial CO2 emissions into locally produced critical raw materials, has secured an €18 million loan from the European Investment Bank (EIB).
This financing is crucial for scaling up the molten salt electrolysis process, enabling the utilisation of CO2 in larger volumes to produce high-performance materials for batteries, defence equipment, paints, coatings, polymers, and concrete. UP Catalyst process reportedly requires less energy than traditional fossil-based alternatives.
“Securing EIB’s financing is key milestone for UP Catalyst as it directly supports the company’s strategic mission to address the growing deficit of graphite – a critical raw material in the EU, the US, Korea and Japan,” said UP Catalyst Chief Executive Officer Rait Maasikas. “Working with the EIB not only validates our innovative technology and local production capabilities but also signals to the market that UP Catalyst is at the forefront of strengthening the resilience of EU industries and manufacturing in the transition to a more independent product supply chain.”
Founded in 2019, UP Catalyst transforms industrial CO2 emissions into cost competitive, high-quality and energy-efficient graphite and carbon nanotubes for electric vehicle batteries and a range of other applications, including paints and coatings, polymers and concrete.
In 2024, the company opened their own in-house product testing and validation, and a new production facility for carbon materials in Estonia. According to the company, they have achieved the lowest carbon footprint for carbon nanotubes and one of the lowest for battery-grade graphite, as verified by its cradle-to-gate Life Cycle Assessment (LCA).
UP Catalyst aims to convert a quarter of a million tons of CO2 into carbon-neutral raw materials by 2030. In March 2025, the company was selected as a strategic project partner by the European Commission under the Critical Raw Materials Act (CRMA).
According to figures provided to EU-Startups, the global graphite supply gap is projected to reach nearly 800,000 metric tonnes by 2030. With Europe accounting for approximately 15% of that shortfall, UP Catalyst aims to supply up to 50% of the region’s graphite demand gap through its planned scale-up.
“A key pillar for us is to finance innovative net-zero technologies that can help to reduce adverse impact on our climate and environment while strengthening Europe’s competitiveness,” said EIB Vice-President Thomas Östros. “UP Catalyst embodies this vision by pioneering carbon capture and utilisation solutions that are both innovative and impactful. We are excited to support them in scaling their operations and advancing sustainable technologies that will shape the future of Europe’s green transition.”
The EIB funding, which takes the form of venture debt, will be used to advance the European Union’s goals of fighting climate change, reducing import dependency and strengthening the advanced manufacturing sector.
UP Catalyst has successfully scaled its technology from laboratory to commercial scale, with product performance being validated in large-scale battery cells using GEN3alpha in 2025.
The company has also recently confirmed that its graphite meets the quality standards of fossil-based alternatives, highlighting its potential as a local and sustainable replacement in the energy storage and defence industries.
With support from the EIB, the company plans to further expand production to 270 tonnes of carbon nanotubes and 1,350 tonnes of green graphite per year by 2027 – a scale-up that will require the utilisation of approximately 6,000 tonnes of CO2 annually.
The EIB support is backed by the InvestEU initiative. The operation is part of the EIB InvestEU Guarantee Agreement, focusing on sustainable critical raw materials. The EU prioritises these materials to ensure a secure supply for its industries.
Read the orginal article: https://www.eu-startups.com/2025/04/up-catalyst-raises-e18-million-to-advance-the-eus-critical-raw-material-production/
