Estonian DeepTech innovations meet Korean industrial scale: UP Catalyst and SGC Energy are turning captured CO₂ into battery-grade graphite and carbon nanotubes.
More and more Estonian innovations are making strides in Asia. This week, DeepTech firm UP Catalyst has announced a partnership with South Korean industrial conglomerate SGC Energy to bring its carbon-conversion technology to one of the world’s most strategically important battery markets.
The collaboration centres on UP Catalyst’s proprietary MSCC-ET process — Molten Salt CO₂ Capture and Electrochemical Transformation — which converts captured industrial CO₂ into battery-grade graphite and carbon nanotubes (CNTs). These are critical input materials for lithium-ion batteries, used by the major South Korean battery manufacturers that supply global EV and electronics supply chains.
SGC Energy brings something equally valuable to the table: Korea’s first and largest private-sector CO₂ capture facility, located at its Gunsan plant on the country’s west coast. The site already captures 100,000 tonnes of CO₂ annually, producing liquid CO₂ with over 99.9% purity. For UP Catalyst, that’s not a waste stream — it’s feedstock.
What UP Catalyst and SGC Energy plan together
The partnership is structured around four work streams: technology verification, deployment of a demonstration system in Korea, development of a commercial-scale facility, and longer-term models including a potential joint venture or technology licensing arrangement.
The two companies have been quietly building toward this for over a year. Teams exchanged visits between UP Catalyst’s pilot facility in Maardu, Estonia, and SGC’s Gunsan plant. In October 2025, the Estonian Ambassador to Korea joined both delegations at the Gunsan site.
UP Catalyst has EU-level recognition: the European Investment Bank backs the company, and it holds Strategic Project status under the EU Critical Raw Materials Act — a designation reserved for projects that help reduce Europe’s dependence on imported raw materials, particularly from China.
“Capturing CO₂ was the beginning of the journey for SGC. The real ambition is to close the loop and build a genuinely circular carbon model, ” said Ken Yoon, CSO of SGC Energy. “ UP Catalyst’s technology represents exactly the kind of innovative solution Korea needs to decarbonise its industrial sector while strengthening domestic battery supply chains.
Korea imports the vast majority of the graphite used in its battery industry, mostly from China. Any domestic or allied-nation alternative carries significant supply chain appeal.
“Korea is one of the most important battery markets in the world and SGC Energy is the ideal partner to bring our technology to Asia, ” said Rait Maasikas, CEO of UP Catalyst. “ This partnership accelerates our mission to transform industrial CO₂ from a liability into a critical raw material for the global energy transition. ”
Are you interested in trading with Estonia? Enterprise Estonia is providing sourcing services for foreign enterprises. Contact Estonian export advisors or use our free e-consulting service to start trade with Estonia.
