Woodchips are being utilized by a firm in New Zealand to create synthetic graphite for use in electric vehicle batteries.
By burning the waste from the production of timber through a process called pyrolysis, CarbonScape creates biochar, a substance rich in carbon, which is then used to manufacture its counterpart graphite. Following milling, the material becomes raw graphite, which the business describes as “a more sustainable option.”
Ivan Williams, CEO of CarbonScape, stated to The Wall Street Journal, “Our goal is to decarbonize the battery industry.”
“That solves some other problems, too, including localizing supply chains,” he stated.
Developing a competitive substitute for graphite is becoming more crucial for Western countries as they aim to lessen their dependency on EV batteries manufactured in China.
As many EVs run on LFP (lithium, iron, phosphate) batteries, which are currently produced in large quantities in China, “up to 90% of the EV-battery supply chain relies on China,” according to a July analysis by Morgan Stanley analysts.
Due to its supply chain dominance, China is able to produce batteries at a lower cost than its competitors, which enables it to offer lower prices.
However, Western countries are searching for alternatives in order to prevent any future supply chain interruptions due to the tight relations between China and the US.
However, some detractors have questioned CarbonScape’s concept, claiming that it uses too many woodchips and isn’t as economical as graphite (The Journal).
Nevertheless, as worldwide EV production rises, the Kiwi startup is drawing notice from around the world. According to The Journal, earlier this year, CarbonScape raised $18 million from the European forestry products giant Stora Enso, creating new supply routes into Europe.
“This investment represents a strong statement of support for sustainable sourcing of battery materials for global decarbonization,” Williams told Reuters.
Amperex Technology, a battery manufacturer located in Hong Kong, has also made investments in the business.
Since graphite is a vital resource for both the US and the EU, authorities want to promote increased local mining output.
Following Business Insider’s request for comment outside of regular business hours, CarbonScape did not respond right away.
