CATL, the world’s largest battery manufacturer, has invested in CarbonScape Ltd., a New Zealand-founded company that converts forestry by-products into battery-grade graphite.

The multi-year partnership, announced in Hong Kong on July 6, aims to help scale the material for battery supply chains in the US and Europe.

The deal gives CATL board representation. The two companies plan to validate CarbonScape’s process at demonstration scale at CATL facilities before moving toward commercial plants.

Hong Kong-based investment firm Lochpine Capital also became a strategic shareholder.

The partnership comes as China accounts for 74% of the graphite anode supply chain, according to Benchmark Mineral Intelligence.

US policy could also shape the market. The Treasury Department said that, beginning in 2025, clean vehicles seeking federal tax credits cannot use critical minerals extracted, processed, or recycled by a foreign entity of concern.

However, graphite in anode materials has a temporary exemption for vehicles placed in service before 2027.

🔗 Source: CarbonScape

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