Green economy

Batteries: Milan-based start-up set to begin production of synthetic graphite

It is a key component for lithium-ion batteries. The start-up, X-nano, was founded by the Italian Institute of Technology (IIT) and is funded by Mito Tech Ventures

by Niccolò Gramigni

15 June 2026

3' min read

Translated by AI

Versione italiana

Key points

3' min read

Translated by AI

Versione italiana

A pilot plant for the sustainable production of synthetic graphite – the only one of its kind in Italia and one of just a few in Europe – is to be established across Lombardy, Abruzzo and Puglia, with the aim of becoming operational between late 2027 and the first half of 2028. Graphite is a highly valuable material because it is strategic for lithium-ion batteries used in electric vehicles and energy storage systems: at present, it is produced in China, but neither the United States nor Europe (with the exception of a few plants in France and Germany) are equipped to do so. Hence the idea behind X-nano, a start-up born from the Italian Institute of Technology (IIT), could lead the way in Italia: the start-up founded by Fabio Di Fonzo has closed a €3.7 million seed round. The round is led by Mito Tech Ventures, a venture capital fund managed by Mito Technology, alongside Pietro Fiorentini and a group of private investors: the funds raised will enable the construction of the pilot plant.

Specifically, the company has developed a proprietary, patented industrial process based on a non-catalytic pyrolysis reactor capable of converting gaseous hydrocarbons from any source – whether fossil-based or bio-derived – into high-purity graphite for lithium batteries and hard carbon for sodium batteries.

The geographical location of the plant

“Over 90% of global graphite production is controlled by China,” explains Di Fonzo. “Today, graphite is one of the critical materials whose exports are controlled by the Chinese government. At present, the main plant is in Casarile, in the province of Milan. For the pilot plant, we are working across Lombardy, Abruzzo and Puglia. Why these regions? It is linked to the availability of sites suitable for the specific requirements of this plant.”

Di Fonzo also outlines the timeline: ‘We expect to have it completed by the end of 2027, so that it will be fully operational between the end of 2027 and the first half of 2028.’

The start-up currently has 17 employees and four executives: it has three offices, two in Milan and one in Casarile. “Graphite,” he points out, “is used in batteries, as electrodes in steelworks, and as lubricants. In terms of graphite production in general, there is some in France and Germany, but when it comes to producing materials for batteries – which require the highest level of purity – I would say there is nothing available today. There are other start-ups trying to solve this problem using different methods, but in terms of production facilities, there is nothing.”

But is it difficult to obtain the necessary permits to open a facility like this? “For now,” replies Di Fonzo, “we are classified as a research facility, so there are no additional bureaucratic hurdles. For plants, there are safety and fire prevention issues, but I want to emphasise that there are no polluting emissions. So we don’t think there will be any major problems. In general, our aim is to have zero emissions and zero water consumption because our material is already pure to begin with.”

“With X-nano, we are confident that we can help resolve one of the main bottlenecks in the energy transition: the shortage of high-quality synthetic graphite,” says Massimiliano Granieri, Chairman of Mito Technology.

Business? In Europe, but even more so in the United States

The business is based in Europe but could also be in the United States, given the turbulent relations with China: ‘We see great potential in the United States,’ says Di Fonzo. ‘After all, I would point out that Europe maintains good trade relations with China, unlike the United States. Our goal is to become the leading manufacturer for the whole of the Western world, in Europe and the United States.”

Growth also means an opportunity for increased turnover: ‘This is likely to happen from 2029 onwards,’ concludes the founder of X-nano. A typical European small-scale battery plant has an annual capacity of 10 gigawatt-hours and requires 10,000 tonnes of graphite per year: each tonne of graphite is worth between €7,000 and €10,000. It’s easy to do the maths.’ And considering that the estimated increase in demand for graphite (according to the IEA) is over 300% by 2036, it is equally easy to understand why everyone wants to get into this business.