Tallinn-based UP Catalyst Secures €18 Million Loan from the European Investment Bank (EIB)

Purpose of funding

The funding will help scale up its molten salt electrolysis process, which uses less energy than fossil-fuel methods to create materials used in batteries, defense, paints, coatings, plastics, and concrete.

UP Catalyst Chief Executive Officer Rait Maasikas said, “Securing EIB’s financing is key milestone for UP Catalyst as it directly supports the company’s strategic mission to address the growing deficit of graphite – a critical raw material in the EU, the US, Korea and Japan, Working with the EIB not only validates our innovative technology and local production capabilities but also signals to the market that UP Catalyst is at the forefront of strengthening the resilience of EU industries and manufacturing in the transition to a more independent product supply chain.”

In 2024, UP Catalyst opened its own product testing lab and a new carbon materials factory in Estonia. The company says it now has the lowest carbon footprint for carbon nanotubes and one of the lowest for battery-grade graphite, based on a full life cycle assessment.

By 2030, UP Catalyst plans to turn 250,000 tons of CO₂ into carbon-neutral raw materials. In March 2025, it was chosen as a key partner by the European Commission under the Critical Raw Materials Act.

With a global graphite shortage expected to reach 800,000 metric tons by 2030, and Europe facing 15% of that gap, UP Catalyst aims to cover up to half of Europe’s shortfall through its expansion plans.

EIB Vice-President Thomas Östros said, “A key pillar for us is to finance innovative net-zero technologies that can help to reduce adverse impact on our climate and environment while strengthening Europe’s competitiveness, UP Catalyst embodies this vision by pioneering carbon capture and utilisation solutions that are both innovative and impactful. We are excited to support them in scaling their operations and advancing sustainable technologies that will shape the future of Europe’s green transition.”

The €18 million from the European Investment Bank (EIB), given as venture debt, will help support the EU’s goals to fight climate change, cut down on imports, and boost advanced manufacturing.

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UP Catalyst has grown its technology from lab tests to commercial use. In 2025, its materials were successfully tested in large battery cells using GEN3alpha. The company also confirmed that its graphite matches the quality of fossil-based alternatives, making it a strong local and eco-friendly option for energy storage and defence.

With EIB’s support, UP Catalyst plans to scale up production by 2027 to 270 tonnes of carbon nanotubes and 1,350 tonnes of green graphite each year. This will require about 6,000 tonnes of CO₂ annually.

About UP Catalyst

UP Catalyst turns CO₂ emissions into carbon nanomaterials and graphite used in electric vehicle batteries, concrete, and medical applications.