LD Carbon raises $28m to scale up tire pyrolysis technology

Seoul – South Korean waste tire pyrolysis company LD Carbon has closed a $28 million (€26 million) Series C funding round led by Toyota's growth fund, Woven Capital.

LD Carbon will use the investment to scale operations to recycle end-of-life tires (ELTs) and material from end-of-life vehicles into recovered carbon black (rCB) and tire pyrolysis oil (TPO), the company announced 18 June.

The company currently operates a plant in Gimcheon, South Korea, with an annual capacity to produce 7 kilotonnes per annum (ktpa) of rCB, which is supplied to “major tire and rubber product manufacturers.”

Additionally, LD Carbon has secured a 10-year supply agreement with SK Incheon Petrochemicals for the facility's TPO.

The ELT recycler is also currently building what it describes as “Asia's largest tire pyrolysis plant” in Dangjin City, Sout Korea, with completion targeted in 2024.

The plant will have a capacity to process 50ktpa of ELTs, producing 23ktpa of TPO, 20ktpa of rCB, and 7ktpa of “other valuable gas and materials.”

LD Carbon is also co-developing key product specifications with industry players such as “several major global tire makers,” the Korean recycler added.

According to LD Carbon, manufacturing carbon black is a highly polluting process, generating 25 million tonnes of CO2 annually.

Another 1.6 million tonnes are produced from burned waste tires, leading to a combined CO2 equivalent of more than 9 million passenger vehicles.

"LD Carbon is solving a tough chemistry problem that continues to challenge manufacturers across the automotive supply chain,” said Prashant Bothra, Woven Capital principal who is joining the LD Carbon board.

With a major plant under construction, the company is scaling their technology to 'maximise productivity and reduce the cost of producing high-performance rCB,' he added.

With “regulatory and corporate tailwinds, a strong sales pipeline, and a first-mover advantage in Asia,” Bothra said LD Carbon was “well-positioned” for growth.

The fund-raising round was also participated by Meritz Securities, Investwith, Industrial Bank of Korea, Hyundai Motor Group ZER01NE, Elohim Partners and New Main Capital.
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