HELSINKI (From news reports) -- New Zealand-based CarbonScape and biomass developer Stora Enso have announced plans to build a biographite demonstration plant in Kotka, southern Finland.

Biographite is designed "to replace mined or fossil-based synthetic graphite in lithium-ion batteries, addressing critical supply chain and sustainability challenges".

CarbonScape said it is working on an engineering study for the demonstration plant, with the goal of starting construction in 2025 and sample production in 2026.

The demo facility aims to "produce larger biographite samples for OEMs and battery cell makers", to qualify products, and to train operators and engineers in a large industrial setting. Additionally, the plant will help biomaterials producer CarbonScape establish a presence in the European market.

CarbonScape has been optimising its biographite production process at a pilot plant in New Zealand since 2018. The new demonstration plant in Sunila represents a "significant scaling up of this technology, paving the way for full commercialisation", according to the company.

CarbonScape is also in the process of designing a commercial biographite plant, with data from the demonstration facility expected to support its global expansion.

"Hosting CarbonScape's demonstration plant at our Sunila site aligns perfectly with our shared vision for advancing sustainable battery technologies and the shift to renewable materials," stated Juuso Konttinen, senior vice-president of biomaterials growth businesses at Stora Enso.

Stora Enso, which closed its pulp production and lignin extraction operations at Sunila in 2023, is an investor in CarbonScape, alongside battery company ATL. Last September, CarbonScape secured $18m (NZ$29.08m) in funding to support its biographite commercialisation efforts.

Graphite makes up to 42% of the volume of a Li-ion battery, with the International Energy Agency (IEA) projecting a graphite supply deficit of 770,000 tonnes per year by 2030.

In addition to helping address supply shortages, CarbonScape estimates that biographite could have a negative carbon footprint.

"By producing biographite from sustainable wood sources, we are not just creating a new supply chain - we are redefining what is possible in battery technology," said Ivan Williams, CEO of CarbonScape.