Estonian deep-tech company UP Catalyst has signed a Letter of Intent with Finnish energy company Oulun Energia to explore establishing a large-scale battery-grade graphite and carbon nanotube production facility in Oulu, Finland. The planned facility would use captured CO₂ from Oulun Energia’s operations as feedstock, targeting annual output of approximately 20,000 tonnes of sustainable battery-grade graphite and carbon nanotubes, with operations targeted for 2031.

UP Catalyst’s process—Molten Salt Carbon Capture and Electrochemical Transformation—passes captured CO₂ through a molten salt electrolysis cell to produce solid carbon in battery-grade graphite and carbon nanotube form. The approach converts an emissions stream into a critical raw material rather than sequestering or releasing it. The company holds Strategic Project designation under the EU Critical Raw Materials Act, which is intended to accelerate permitting and financing for European supply chain buildout in battery materials where the continent is heavily import-dependent.

The LoI covers joint evaluation of industrial integration and energy infrastructure requirements, including how CO₂ captured at Oulun Energia plants could feed the production process at Oulu Industrial Park. Finland’s clean energy grid and existing industrial base are the stated rationale for the site selection. Business Finland has already granted UP Catalyst a €47 million tax credit under its investment credit scheme for large climate-neutral economy investments, providing early-stage financial support for the planned expansion.

“Finland offers a very strong foundation for industrial scale-up, with a reliable energy grid, competitive clean energy, strong industrial infrastructure, and clear support for clean transition technologies,” said Rait Maasikas, CEO of UP Catalyst.

Source: UP Catalyst