Estonian deep-tech company UP Catalyst and South Korean energy and industrial conglomerate SGC Energy have formed a partnership to commercialize technology that converts captured carbon dioxide into battery-grade graphite and carbon nanotubes in South Korea.

Announced April 23, 2026, the collaboration centers on UP Catalyst’s proprietary Molten Salt CO₂ Capture and Electrochemical Transformation technology, which enables the conversion of industrial CO₂ emissions into high-value carbon materials used in batteries and advanced electronics.

The partnership marks a major step in UP Catalyst’s expansion into Asia and positions South Korea—home to some of the world’s leading battery manufacturers—as a new hub for carbon-negative battery raw material production.

Under the agreement, the companies will work together on technology verification, deployment of a demonstration system in South Korea for local sample production, and development of a future commercial-scale facility serving the domestic carbon nanotube and graphite markets. The partners will also explore longer-term cooperation models, including a potential joint venture, technology licensing, and joint participation in government-supported projects.

SGC Energy will provide carbon dioxide supply and infrastructure through its industrial-scale carbon capture, utilization and storage facility at its Gunsan plant. UP Catalyst will contribute its patented technology, intellectual property and manufacturing expertise developed at its pilot facility in Estonia.

“Capturing CO₂ was the beginning of the journey for SGC,” said Ken Yoon, chief strategy officer of SGC Energy. “The real ambition is to close the loop and build a genuinely circular carbon model. UP Catalyst’s technology is exactly the type of innovation Korea needs to decarbonize its industrial base while strengthening domestic battery supply chains.”

SGC operates South Korea’s first and largest private-sector industrial-scale CCU facility, capturing approximately 100,000 metric tons of carbon dioxide annually and producing liquid CO₂ with a purity exceeding 99.9 percent.

“Korea is one of the most important battery markets in the world, and SGC Energy is the ideal partner to bring our technology to Asia,” said Rait Maasikas, chief executive officer of UP Catalyst. “This partnership accelerates our mission to transform industrial CO₂ from a liability into a critical raw material for the global energy transition.”

The agreement follows more than a year of collaboration between the two companies, including reciprocal visits to UP Catalyst’s pilot facility in Estonia and SGC Energy’s Gunsan plant. Those visits confirmed the quality, consistency and scalability of UP Catalyst’s nanocarbon output and the readiness of SGC’s infrastructure.

In October 2025, representatives from both companies and Estonian Ambassador to South Korea Tanel Sepp toured the Gunsan facility, further strengthening technical cooperation and joint planning efforts that led to the formal partnership.

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