Carbonxt Group Ltd (ASX: CG1) (“Carbonxt” or “the company”) has injected an additional $750,000 into its Kentucky activated carbon facility, lifting its ownership stake to 45.9% as the plant enters its final construction phase. The Company announced that the facility is on track for commissioning in November, with initial sample production expected shortly after.
The milestone investment brings Carbonxt closer to its 50% ownership target in New Carbon Processing, LLC. More importantly, it positions the Company to enter the liquid-phase activated carbon market while expanding total production capacity by approximately 200%.
Construction Reaches Critical Stage
The kiln has been fully constructed following additional insulation work that improved thermal efficiency and maintained external temperatures below 100°F. This technical achievement matters because it reduces energy consumption and operating costs once production begins. Refractory lining installation is currently underway by the kiln manufacturer. Once complete, heat-treating processes will commence as the final step before operational testing
Figure 1: Carbonxt’s Kentucky activated carbon production facility nearing completion
Parallel to the kiln work, installation teams are completing the bagging equipment, conveyors, and additional silos. The onsite power station is scheduled for commissioning in November, coinciding with the plant’s startup sequence.
Key Development Milestones
- Kiln Construction: Complete, with improved thermal efficiency
- Refractory Installation: In progress by manufacturer
- Bagging Systems: Final installation phase underway
- Power Station: Scheduled for November commissioning
- First Samples: Expected November 2025
- Commercial Production: Targeted for early 2026
Production Capacity Poised to Triple
Once operational, the Kentucky facility will increase Carbonxt’s sales by around 200% and provide entry into the liquid-phase activated carbon market. This segment is several times larger than the air-phase markets where the Company currently operates.
The facility will produce premium-grade activated carbon for PFAS filtration, wastewater treatment, and industrial emission control. These applications align with tightening U.S. EPA standards and growing demand for domestic supply chains.
Managing Director Warren Murphy stated:
“The Kentucky project has reached its final stages of construction, with commissioning now in sight. The latest investment increases our ownership position and secures our participation in one of the fastest-growing segments of the activated carbon market. This facility will materially expand our production business and strengthen Carbonxt’s position as a domestic U.S. supplier for both air and water purification markets.”
Market Context: PFAS Regulations Drive Demand
The timing of Carbonxt’s Kentucky facility expansion coincides with strong growth in activated carbon demand, particularly for PFAS removal. The global activated carbon market was estimated at $3,934.1 million in 2024 and is expected to reach $5,497.3 million by 2030, at a CAGR of 3.8%.
Figure 2: Growing demand for activated carbon globally
The U.S. EPA’s 2024 PFAS drinking-water standard has named granular activated carbon (GAC) as Best Available Technology, creating regulatory momentum for long-term demand.
The PFAS filtration market is projected to reach $244.1 million by 2033 from $186 million in 2024, at a CAGR of 7.0%. This growth stems from stricter regulations and increased public awareness of health risks associated with PFAS contamination.
PFAS has been found in up to 49 states within the U.S. and leads to several health problems, including thyroid disease, liver damage, obesity, fertility issues, and cancer.
Carbonxt’s Kentucky facility positions the Company to serve this expanding market with domestically produced activated carbon, meeting both regulatory requirements and customer demand for secure supply chains.
Next Steps and Timeline
The Company outlined its immediate priorities for the Kentucky facility:
October 2025: Complete refractory lining and final heat treatment of the kiln
November 2025: Commission power and back-end systems; start kiln operations; produce first activated carbon samples for internal testing and customer qualification
Early 2026: Progress to initial commercial production and first material sales
Strategic Funding and Ownership Structure
The $750,000 investment comes from Carbonxt’s recent capital raises, detailed in a concurrent announcement regarding convertible notes and placement. The Company is targeting 50% ownership in New Carbon Processing, LLC, providing significant operational control and financial participation in the facility’s future production revenues.
This ownership structure allows Carbonxt to maintain its lean capital model while participating in a larger-scale production asset. The Kentucky facility represents the Company’s most significant capacity expansion to date.
Investor Outlook
Carbonxt continues executing its strategy to expand production capacity and enter higher-margin market segments. The Kentucky facility represents a material step change for the Company, moving from its established air-phase products into the larger liquid-phase activated carbon market.
As of today, Carbonxt Group Ltd shares are trading on the ASX with a 52-week range of $0.043 to $0.094 per share. The current market price stands at $0.090 per share, touching the upper end of its 52-week range, reflecting strong bullish momentum.
Figure 3: Carbonxt share price
The Company’s progress in bringing the Kentucky facility to the commissioning stage demonstrates execution capability on a complex capital project. With first production samples expected in November, investors will soon have tangible evidence of the facility’s production quality and capabilities.
The facility’s focus on PFAS filtration products positions Carbonxt to benefit from regulatory tailwinds and growing market demand. Commercial production in early 2026 will mark the beginning of revenue generation from this strategic asset.
