CATL backs NZ-founded CarbonScape in biographite scale-up

Contemporary Amperex Technology Co., Limited (CATL), the world’s largest battery manufacturer, has entered a strategic investment partnership with CarbonScape Ltd., a New Zealand-founded developer of sustainable bio-based graphite materials for battery applications.

The deal, announced on 6 July 2026, gives CATL board representation in CarbonScape and positions it as the company’s primary industrialisation partner. Hong Kong-based investment firm Lochpine Capital has also joined as a co-investor alongside CATL.

CarbonScape, which operates a pilot plant in Blenheim and is headquartered in New Zealand, has developed a proprietary process that converts forestry by-products into battery-grade graphite — known as biographite — suitable for lithium-ion battery applications.

“This partnership is about far more than capital,” says CarbonScape chief executive Ivan Williams. “It provides access to CATL’s unparalleled expertise in scaling and mass production, world-class facilities, global market reach, and a clear pathway to gigafactory-scale deployment. It validates the strategic importance of biographite in the future of electrification and uniquely aligns technical de-risking with route-to-market readiness. Together, we aim to bring commercial biographite production online by the end of the decade.”

Graphite: the battery supply chain’s overlooked material

Graphite is the single largest material component in lithium-ion batteries by volume, representing up to 50% of the battery cell. According to the press release, each electric vehicle (EV) contains roughly 50–100 kg of graphite — more than lithium, nickel, and cobalt combined — making it one of the most critical materials for the energy transition.

Global demand for battery-grade graphite is expected to grow approximately six-fold between 2025 and 2040, driven by the rapid expansion of EVs and energy storage systems. Yet more than 75% of graphite currently used in batteries comes from an oil-based feedstock.

CarbonScape chief commercial officer Vincent Ledoux-Pedailles says the scale of the problem has been underappreciated by the industry. “Graphite is the forgotten giant of the battery supply chain — the single largest material in every EV battery by weight, yet the majority of that supply is oil-based,” he says. “What we have built at CarbonScape is the only proven pathway to produce battery-grade graphite from forestry residues, at target cost parity with conventional graphite and with a carbon-negative footprint. CATL’s investment is the most powerful validation this technology could receive.”

Partnership structure and scale-up pathway

Under the multi-year collaboration, CarbonScape and CATL will validate the biographite technology at demonstration scale at CATL facilities, refining the process ahead of full-scale commercial plant deployment. The partnership structure includes equity-based incentives aligned with the successful commercial deployment of CarbonScape’s technology.

Oscar Luo, executive president and global head of business development, licensing and venture management at CATL, says the investment reflects the company’s broader commitment to supply chain sustainability. “Sustainable innovation across the battery value chain is essential to advancing the global energy transition,” he says. “CarbonScape’s technology introduces a novel method for producing battery-grade graphite from renewable resources, embodying a true breakthrough in material science. This is not just about scaling a process; it’s about catalyzing a shift toward fundamentally cleaner and smarter energy solutions.”

Lochpine Capital lead partner Blake Niu says the firm sees the partnership as strategically well-timed.