LAB7 has agreed to a strategic investment with Homeostasis, a U.S. startup developing technology to turn carbon dioxide (CO2) into synthetic graphite, in a push to broaden industrial raw material supply chains and support decarbonization goals.
LAB7 is the venture building arm of Saudi Arabia’s majority state-owned Aramco, which is one of the globe’s largest integrated energy and chemicals companies.
The partnership, announced December 30, is designed to accelerate a process that converts CO2 emissions from industrial sources into high-value graphite used in lithium-ion battery anodes—a core component of energy storage systems for electric vehicles and other applications.
The collaboration reflects LAB7’s aim to help startups bring disruptive industrial technologies to market while tackling climate challenges, the company said on its website.
Relevant: Homeostasis Secures $1.2M To Produce Graphite From Waste CO2
The role of graphite as a critical material has surged with global electrification, prompting firms to seek lower-carbon production pathways.
Homeostasis’ approach uses molten-salt electrolysis to transform captured CO2 from sources such as refineries and chemical plants into high-purity, anode-grade graphite, a feedstock fundamental to battery manufacturing.
“Homeostasis welcomes LAB7’s support as we unlock the CO2-to-graphite vertical, a new technology for the growing graphite market,” co-founder and CEO Makoto Eyre said, adding that it will position the company to produce graphite using the increasing global fleet of carbon capture assets.
Julien Lombardi, co-founder and chief science officer of the U.S. startup, described the tie-up as a “key step in harnessing the strategic advantages of the circular economy,” noting the technology’s potential to strengthen energy infrastructure by turning waste streams into abundant feedstock.
Under the deal, LAB7 will support Homeostasis in refining its production processes and scaling operations ahead of broader market entry.
The collaboration underscores how industrial decarbonization efforts increasingly view carbon emissions not as waste but as a potential resource for producing essential materials.
Aramco’s backing of LAB7, which provides expertise in technology acceleration and market access, adds strategic heft to the partnership, aligning with wider industry efforts to make critical battery materials more sustainable and resilient.
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