• European Investment Bank (EIB) lends UP Catalyst €18 million to scale carbon dioxide utilisation technology.
• UP Catalyst to convert CO₂ emissions into low cost, carbon-neutral graphite and nanotubes.
• Initiative aligns with EU climate and economic goals.

The European Investment Bank (EIB) is providing an €18 million loan to Estonia-based UP Catalyst, a company specialising in transforming industrial CO₂ emissions into locally produced critical raw materials. This financing is crucial for scaling up the molten salt electrolysis process, enabling the utilisation of CO₂ in larger volumes to produce high-performance materials for batteries, defence equipment, paints, coatings, polymers, and concrete. UP Catalyst process requires multiple times less energy than traditional fossil-based alternatives.

The EIB funding, which takes the form of venture debt, will enable UP Catalyst to expand the output of its flagship materials: synthetic graphite and multi-walled carbon nanotubes (MWCNTs) by the end of 2027. This initiative will not only scale up production but also enhance cost efficiency through economies of scale, strengthening UP Catalyst’s position as a trusted, local supplier to the rapidly growing EU market.

“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,” said EIB Vice-President Thomas Östros. “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 support is crucial to advance the European Union’s goals of fighting climate change, reducing import dependency and strengthening the advanced manufacturing sector. UP Catalyst has successfully scaled its technology from lab to commercial scale, targeting an annual production capacity of 27 tonnes of carbon materials by the end of 2025 with its Generation 3 reactor. With support from the EIB, the company plans to further expand production to 270 tonnes of carbon nanotubes and 1,350 tonnes of green graphite per year by 2027 – a scale-up that will require the utilisation of approximately 6,000 tonnes of CO₂ annually.

“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,” said UP Catalyst Chief Financial Officer Rait Maasikas. “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.”

The EIB support is backed by the InvestEU initiative, The operation is part of the EIB InvestEU Guarantee Agreement, focusing on sustainable critical raw materials. The EU prioritises these materials to ensure a secure supply for its industries.

Background information 

Up Catalyst
UP Catalyst transforms industrial CO₂ emissions into cost competitive, high-quality and energy-efficient graphite and carbon nanotubes for electric vehicle batteries and a range of other applications, including paints and coatings, polymers and concrete. In 2024, the company opened their own in-house product testing and validation, and a new production facility for carbon materials in Estonia. The company has achieved the lowest carbon footprint for carbon nanotubes and one of the lowest for battery-grade graphite, as verified by its cradle-to-gate Life Cycle Assessment (LCA). UP Catalyst aims to convert a quarter of a million tons of CO₂ into carbon-neutral raw materials by 2030. In March 2025, the company was selected as a strategic project partner by the European Commission under the Critical Raw Materials Act (CRMA).

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.

InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.