Tallinn-based UP Catalyst has received €18 million in venture debt financing from the European Investment Bank (EIB) to expand its production of carbon-neutral graphite and carbon nanotubes derived from industrial CO₂ emissions. The company will use the funds to scale its molten salt electrolysis technology, enabling an annual output of 1,350 tonnes of graphite and 270 tonnes of nanotubes by 2027. This expansion is intended to help address Europe’s projected graphite supply gap, with the company aiming to meet up to 50% of the regional shortfall. The financing will also support the company’s goal of converting 6,000 tonnes of CO₂ per year into high-performance materials for use in batteries, defence, coatings, and construction. The loan is part of the EU’s InvestEU initiative and aligns with the bloc’s strategic objectives under the Critical Raw Materials Act.
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 is well-positioned 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, is crucial 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.
“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.”
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.
This initiative will not only scale up production but also enhances cost efficiency through economies of scale, strengthening UP Catalyst’s position as a trusted, local supplier to the rapidly growing EU market.
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.
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Read the orginal article: https://arcticstartup.com/up-catalyst-gets-e18m-debt-financing/
