Estonian scale-up UP Catalyst is turning captured CO₂ into battery-grade graphite – and has signed a Letter of Intent for a 20,000-tonne-a-year plant in Oulu, Finland, targeted for 2031.
Despite its compact size, Estonia is ready to power a European-wide green transition with its contribution to innovative green energy production and storage. This June, Estonian DeepTech scale-up firm UP Catalyst is pushing ahead with plans to manufacture battery-grade graphite and carbon nanotubes from captured carbon dioxide in Finland, signing a Letter of Intent with Finnish energy company Oulun Energia to tap CO₂ emissions from one of its Oulu facilities.
The company’s pitch rests on an unusual bit of chemistry: rather than mining graphite or refining it from fossil sources, UP Catalyst uses CO₂ molten salt electrolysis to turn captured industrial emissions into the material. The proposed plant, targeted to come online in 2031, would churn out roughly 20,000 tonnes of battery-grade graphite and carbon nanotubes a year.
The stakes are strategic as much as commercial. Graphite is a critical input for defence, e-mobility and the green transition, and Europe currently leans heavily on imports. UP Catalyst is recognised as a Strategic Project under the EU Critical Raw Materials Act, the bloc’s framework for shoring up the domestic supply of key minerals.
Oulu as a strategic choice
Finland has emerged as the firm’s preferred base for scaling up, thanks to a reliable grid, competitive clean energy and a growing role in Europe’s battery value chain. It’s also Estonia’s largest trade partner. “Finland offers a very strong foundation for industrial scale-up,” said Rait Maasikas, CEO at UP Catalyst, adding that the collaboration is “an important step in understanding how industrial CO₂ emissions, energy infrastructure, and local partnerships can help enable the next generation of critical raw material production in Europe.”
For Oulun Energia – one of Finland’s largest energy companies, supplying electricity and heating to households and industry – the tie-up fits a broader green-growth strategy. “The collaboration with UP Catalyst aligns with Oulun Energia’s strategy, where we aim for strong growth through the green transition,” said Kimmo Alatulkkila, Head of New Business, framing it as a way to recycle materials and bolster Northern Finland’s industrial base.
The two parties will now evaluate industrial integration, energy infrastructure and the use of captured CO₂ to feed eventual large-scale production at the Oulu Industrial Park. The long-term vision is to break ground before the decade is out, with operations following in the early 2030s.
The plans have public backing. Markku Kivistö, Head of Industry, Cleantech at Invest in Finland, called the country one of Europe’s most competitive environments for commercialising sustainable innovation, noting that “turning emissions into high-value materials and strengthening strategic supply chains is exactly what we need to remain globally competitive.” Earlier this year, Business Finland granted UP Catalyst a €47 million tax credit under a scheme supporting large investments aimed at a climate-neutral economy.
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