Graphite constitutes a staggering 50% of the weight of a lithium-ion battery, making it an indispensable element in the transition to cleaner energy and transportation. However, traditional graphite production ranks as one of the largest sources of CO2 emissions in the battery raw materials supply chain, further compounding the environmental challenge. Supply chains can be complex, criss-crossing the globe from source to assembly. New Zealand-based CarbonScape has today announced investment in a patented process that promises to change the EV battery landscape completely.
CarbonScape is bringing to market biographite, a carbon-negative alternative to traditional graphite used in lithium-ion batteries. It's doing this with an investment of just $18 million. This modest infusion of capital comes from a consortium that includes Stora Enso (Europe's largest supplier of wooden construction material) alongside ATL and others. The ambition is to propel the commercialisation of biographite, with full-scale production facilities in both Europe and the USA.
So what makes this material different and how can it be positioned as carbon negative? Its inventors claim that Biographite represents a sustainable lifeline for the electric vehicle and grid-scale battery supply chains and – if successful – could reduce the carbon footprint of each battery by 30%.
Traditional graphite, which currently dominates these industries, seems to rely on expensive and high-emission production methods. CarbonScape's patented process, the result of seven years of intensive development and testing, ingeniously transforms timber and forestry industry by-products, such as wood chips, into a cleaner, more competitive and secure raw material.
The significance of biographite cold extend beyond the battery sector, as securing a stable supply of graphite becomes a top priority for countries racing to expand EV and renewable energy systems. Recent forecasts anticipate a staggering global supply deficit of 777,000 tonnes of graphite by 2030, with the EV market expected to triple within the same timeframe.
Ivan Williams, CEO of CarbonScape, told us, “CarbonScape's biographite enables the establishment of localised battery supply chains from the ground up. If we are to truly move away from fossil carbon and power our economies through mass electrification, we urgently need sustainable alternatives like biographite to scale quickly.”
Biographite offers a carbon-negative footprint – saving up to 30 tonnes of CO2 emissions per tonne of material processed – giving battery manufacturers the potential to cut the carbon footprint of each battery by almost a third (30%), which could translate into sector-wide emission reductions exceeding 86 million tonnes of CO2 per year by 2030.
Meeting the demand for batteries using synthetic graphite would require more than tripling existing production capacity, leading to higher fossil fuel consumption and emissions. Meanwhile, relying on mined graphite would necessitate the opening of nearly 100 new mines, each taking a decade or more to become operational, all with substantial social and environmental costs.
In contrast, CarbonScape's sustainable process could meet half of the projected global graphite demand for EV and grid-scale batteries by 2030 – while utilising less than 5% of the forestry industry by-products generated annually in Europe and North America.
Crucially, biographite production can be localised near EV and battery manufacturing hubs, creating more efficient and secure domestic and regional supply chains. This localisation reduces geopolitical risk as countries vie for critical minerals and mineral producers seek a greater share of the value chain, as witnessed in recent developments in Chile and Indonesia.
The $18 million investment in CarbonScape is underpinned by strategic partnerships with industry leaders. Stora Enso, one of the world's largest private forest owners and a provider of renewable products in biomaterials and packaging, brings invaluable expertise to the table. ATL, a global innovator in lithium-ion batteries, adds its weight to the venture, accelerating CarbonScape's growth and the speed at which biographite can reach the market.
Juuso Konttinen, Senior Vice President, Biomaterials Growth Businesses at Stora Enso, highlighted the significance of the partnership, “Our partnership with CarbonScape allows us to continue to create the technology of the future and brings us one step closer to a net-zero economy.”
CarbonScape's journey to revolutionise the battery industry began in 2016, aiming to replace fossil carbons with sustainable alternatives. Their pilot facility in Marlborough, New Zealand, currently produces biographite for customer testing and validation, while gathering crucial scale-up data for global commercialisation.
The commercialisation of biographite could mark a pivotal moment in the transition to a cleaner, more sustainable energy future. CarbonScape believes that with the right leadership, innovation and partnerships, the world may soon witness a radical transformation of the battery industry – fostering energy independence, reducing carbon footprints and securing a sustainable future for generations to come.