CarbonX raises growth funding to counter graphite shortages in the battery industry

7 February 2024, Delft, The Netherlands

The Dutch deep tech startup developed a solution to source anode active materials locally and break free from China-dominated graphite supply chains.

CarbonX, a Delft-based deep-tech startup, today announced it has closed a new double digits growth funding round, co-led by Innovation Industries, InnovationQuarter and Borski Fund. The 2014, TU Delft spin-off, developed an innovative carbon anode material for the battery industry, which will be an important solution for the expected shortage of graphite and the export restrictions announced by China earlier this month.

The solution for shortage of graphite
An essential part of the battery necessary for Electric Vehicles (EVs) is graphite, which makes up about half of a typical battery. As demand for EVs is expected to grow significantly, raw material supply chains cannot keep up. About one-third of all EVs produced by 2030 will have to face graphite shortages. This adds-up to about 1M tons of anode material globally, corresponding to an $8bn market opportunity. On top of that China announced export curbs on graphite earlier last month restricting supply to the US and EU.

Founded by Rutger Van Raalten and Daniela Sordi, CarbonX aims to solve the rising need for local supply of critical raw materials for the battery industry. Originally the company developed the technology for the tire industry with Dutch investor Sequoia BV and is now entering the battery market, providing a cost competitive and more sustainable alternative to graphite.

Localized supply chains, lower cost and reducing CO₂
CarbonX aims to create independency from the natural graphite supply chain dominated by China by setting up localized supply chains, utilizing a unique emulsion feedstock technology to produce a new carbon anode material in regional carbon black manufacturing facilities in high volumes.

CarbonX’s unique feedstock technology consumes low energy compared to synthetic or natural graphite, resulting in lower cost and a reduced carbon footprint. Daniela Sordi, CTO of CarbonX explains “Our feedstock technology seamlessly integrates into existing carbon black manufacturing plants resulting in the production of a novel structured carbon material that functions as an active anode material, like graphite. CarbonX’s unique 3D porous network structure improves electron- and lithium-ion transfer, while it is still highly compressible to achieve outstanding battery performance. Moreover, we’re already developing fast-charge and high energy density grades in collaboration with the industry. “

Funding for commercial growth
The funding will set CarbonX up for the next stage of commercial growth. The new capital infusion will allow CarbonX to further optimize their unique material, scale the commercial organization, and increase production capacity to support high-volume application.

CarbonX CEO Rutger van Raalten said “In the wake of export curbs imposed by China earlier last month, we see an increasing need for localized supply chains. With CarbonX technology we enable EU and US to source raw materials independently. Not only at a lower cost per kWh, but also with a reduced carbon footprint which becomes increasingly more important for the battery value chain.”

“The deep material knowledge of both founders and R&D facilities headed by Daniela are an unique asset to the company. The drop-in solution and proven large scale manufacturing enables CarbonX to scale fast. It’s all about timing. Rutger and Daniela maintained contact for several years; in 2023 we recognized CarbonX’s outstanding progress on battery performance, the imminent shortage of graphite and need for near shoring supply chains. As a result Borski Fund, Innovation Industries and InnovationQuarter partnered to fuel long term growth of this impact driven and diverse founders team. The new investors base brings extensive experience in deeptech, battery development and growth dynamics to support the company in its international expansion”, Bertrand van Leersum; investment director Borski Fund.

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Note for press

Contact for questions
Rutger van Raalten, CEO CarbonX
tel: +31 (0)6 4835 6802
email: rvraalten@carbonx.nl

About CarbonX
CarbonX, founded in 2014, helps secure access to anode active materials, providing a cost competitive and more sustainable alternative to graphite. With its proprietary feedstock technology, it enables cell manufacturers and EV OEMs to source critical anode materials locally in high volumes. Headquartered close to the TU Delft campus in the Netherlands, CarbonX provides support in cell validation and aims at setting up localized supply chains in partnership with regional manufacturers.

About Innovation Industries
Innovation Industries is a leading Dutch deep-tech venture capital firm with over €500 million in capital under management. Innovation Industries invests in industrial technology, med-tech, and agri & food technology – focusing on deep-tech companies that can address global challenges. Its portfolio companies make impact through breakthroughs in areas such as energy-efficient photonic chips, climate-resilient seeds, safer & more efficient batteries, sensing technologies for better care, and more. www.innovationindustries.com

About InnovationQuarter
InnovationQuarter is the regional economic development agency for the greater Rotterdam The Hague area. InnovationQuarter finances innovative and fast-growing companies, assists international companies in establishing their businesses in this region, and facilitates (international) collaboration between innovative entrepreneurs, knowledge institutes and government. InnovationQuarter has € 300 million in funds under management. We fund disruptive startups & scale-ups that create a cleaner, smarter and healthier world. High risk, but also high impact.

About BorskiFund
Borski Fund is a diversity tech VC fund headquartered in the Netherlands.  The fund strategically invests in climate tech and sustainable solutions, health care companies and financial empowerment propositions. Borski Fund primarily targets Western Europe-based companies with international aspirations, offering support to entrepreneurs through their extensive network and entrepreneurial experience. The €40 million fund, founded by Simone Brummelhuis and Laura Rooseboom, is dedicated to promoting diversity and gender equality.

About Sequoia BV
Sequoia BV is privately held investment company based in the Netherlands. Sequoia invests in a variety of high growth companies including amongst others CarbonX BV and ASA International plc. Sequoia has been the founding investor of both these companies.