Contemporary Amperex Technology (SHE:300750, HKG:3750) or CATL has made a strategic investment in New Zealand-based bio-based graphite materials maker CarbonScape.
Through the investment, the Chinese battery maker plans "to advance the commercial scale-up and deployment" of bio-based graphite materials for next-generation battery supply chains, CarbonScape and CATL said in a joint press release on Monday.
The multi-year collaboration covers technology de-risking and scale-up, as well as strategic investment and financing.
While the companies did not disclose the financial terms of the transaction, Bloomberg reported that CATL invested to acquire a 20% stake in CarbonScape.
As part of the deal, CATL will also secure representation on CarbonScape's board, according to the press release.
The partnership seeks to establish local graphite supply chains for automakers in the U.S. and Europe.
CATL supplies batteries to major automakers, including Tesla, BMW, Mercedes-Benz, Volkswagen, Honda Motor (TYO:7267), Hyundai Motor (KRX:005380), NIO (HKG:9866, SGX:NIO) and Li Auto (HKG:2015).
The companies noted that over 75% of graphite used in batteries comes from an oil-based feedstock. CarbonScape said its technology enables the production of battery-grade graphite from forestry by-products.
"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," said Vincent Ledoux-Pedailles, Chief Commercial Officer of CarbonScape.
Hong Kong-based investment firm Lochpine Capital, which serves as the strategic offshore investment arm of CATL, has also made a strategic investment in CarbonScape.
"CarbonScape has developed a differentiated approach to graphite production using forestry by-products, and we are pleased to support the company alongside CATL as it advances its technology and commercialisation plans," said Blake Niu, Lead Partner at Lochpine Capital.



