CATL Invests in New Zealand Company, Positioning in Wood-Based Bio-Graphite
Miles Bennett
CATL has taken a stake in New Zealand's CarbonScape to co-develop bio-based graphite made from forestry waste — the world's largest battery maker's first bet on replacing petroleum- and mining-dependent graphite with a wood-derived alternative, targeting commercial-scale production before 2030.
What exactly did CATL buy?
CATL and Hong Kong's Lochpine Capital will jointly hold 20% of CarbonScape, becoming strategic investors.
CarbonScape's core technology converts forestry by-products — sawdust, branch trimmings, mill residues — into battery-grade graphite.
This means → CATL is not buying a graphite mine; it is buying a new feedstock route that bypasses conventional mining and petrochemicals.
Why does graphite matter so much?
Graphite is the critical raw material for lithium-battery anodes — every EV battery needs it.
Global graphite supply is heavily concentrated in China; Benchmark Mineral Intelligence projects the supply gap for natural and synthetic graphite will persist at least through 2031.
In plain terms = more battery factories are being built every year, but the key raw material is running short — and most of it is controlled by one country. That is the fundamental reason CATL is looking for alternatives.
Can you really make graphite from wood?
CarbonScape's technology will first undergo demonstration-scale testing inside CATL facilities, then move toward full-scale deployment after optimisation.
CEO Ivan Williams said: "Our goal is to achieve commercial-scale bio-graphite production before the end of this decade."
This reflects a technology still crossing the lab-to-factory gap. Whether it can truly reach volume production before 2030 is the make-or-break milestone for this investment.
What does this move signal for the market?
CarbonScape projects global battery-grade graphite demand will grow roughly sixfold between 2025 and 2040.
Over 75% of graphite used in batteries today is made from petroleum-based feedstock. This means → even setting geopolitical risk aside, the "de-petroleum" case alone gives the bio-based route real substitution potential.
Put simply = CATL is spending a modest sum (a 20% stake) to buy an insurance policy against traditional graphite supply disruptions — while also betting that a greener feedstock route can reach commercial scale.
Content is for reference only, not financial advice.