Carbonxt Group Limited (ASX: CG1) (“Carbonxt” or “the Company”) has increased its ownership in the Kentucky activated carbon facility to 43.7%, as the plant edges closer to kicking off production. The additional US$1 million investment, made to joint venture partner NewCarbon Processing LLC, is part of Carbonxt’s plan to lift its stake to 50% over time.
Managing Director of Carbonxt, Mr. Warren Murphy said,
“This latest payment marks a key step in our strategic roadmap. The Kentucky plant is central to our expansion into the liquid-phase activated carbon market, significantly larger than our current segments, and supports rising demand from the U.S. water treatment and environmental compliance sectors.
We’re on the cusp of production and appreciate the strong backing of our shareholders through this important transition.”
Key Step Towards U.S. Market Growth
Carbonxt’s Kentucky facility marks a major milestone in the company’s plan to expand into the larger and more profitable U.S. liquid-phase activated carbon market. This new plant will significantly broaden Carbonxt’s product offering beyond its existing segments.
Kentucky Activated Carbon Production Plant [Carbonxt LinkedIn]
Commissioning work is progressing well, with kiln high-temperature testing and control wiring completed. Final insulation work is underway, and activated carbon production is expected to begin in the coming weeks, positioning Carbonxt for revenue and margin expansion in FY26.
A$1 Million Raised to Back U.S. Expansion
To support its latest Kentucky investment and working capital needs, Carbonxt has raised A$1 million through convertible notes issued to substantial shareholder Phelbe Pty Ltd.
The terms align with previous convertible note issues announced in the Company’s Half-Year Report (28 February 2025) and the 10 April 2025 capital raising, with one key change to the incentive structure.
Investors will now receive one unlisted option per share issued upon conversion, exercisable at A$0.10 and subject to shareholder approval. The earlier structure offered one option for every two shares.
Key terms of the convertible notes include:
- Issue Size: A$1.0 million
- Conversion Price: A$0.08 per share
- Interest Rate: 9.5% per annum
- Term: 2 years
- Security: Same priority as existing senior debt held by Pure Asset Management
The funds raised will support Carbonxt’s strategic expansion plans in the U.S. market, including progress towards its targeted 50% ownership of the Kentucky facility.
Building a Broader Market Presence
Beyond Kentucky, Carbonxt is sharpening its focus on becoming a key player in the North American activated carbon market. With stricter environmental rules driving demand for advanced air and water treatment solutions, the company is well-placed to capitalise.
The Kentucky facility complements Carbonxt’s existing powdered activated carbon operation in Georgia, which supplies products for air purification and industrial use. Together, these sites give Carbonxt access to both liquid and gas-phase markets, enhancing its long-term growth potential and market position across the U.S.
Investor Outlook
The global activated carbon market was valued at approximately USD 4.82 billion in 2024 and is forecast to reach around USD 11.94 billion by 2034, expanding at a compound annual growth rate (CAGR) of about 9.5% from 2025 to 2034.
Global Activated Carbon Market Size [ZION]
Carbonxt operates across both gas and liquid-phase activated carbon markets, supplying specialised products for air purification, PFAS filtration, wastewater treatment and emissions control; markets seeing growing demand amid stricter environmental regulations.
- As of 27 June 2025, Carbonxt Group Limited (ASX: CG1) is trading at AUD 0.050 per share, within a 52-week range of AUD 0.043 to 0.085.
- The Company’s current market capitalisation is approximately AUD 18.4 million, with 419 million shares on issue.
With the commissioning of the Kentucky facility nearing completion, additional capital secured, and access to higher-margin U.S. markets on the horizon, Carbonxt is well placed to scale its operations and deliver long-term value to shareholders.
Frequently Asked Questions
- What ownership stake does Carbonxt have in the Kentucky facility?
Carbonxt currently holds a 43.7% ownership stake in the Kentucky activated carbon facility and aims to increase its share to 50% over time. - When will the Kentucky plant start commercial production?
The Kentucky plant is expected to commence commercial production by mid‑2025. Commissioning activities are nearly complete, with kiln high-temperature testing and control wiring finalized and insulation in progress. - What is its production capacity and output role?
While exact production capacity figures are not disclosed, the facility is designed to manufacture premium-grade activated carbon. It will primarily cater to applications such as PFAS filtration, emissions control, and wastewater treatment. The plant positions Carbonxt to expand into the more lucrative liquid-phase activated carbon market. - How is this expansion being financed?
Carbonxt has invested an additional US $1 million in the joint venture with NewCarbon Processing LLC. To support this and meet working capital needs, the company also raised A$1 million through a convertible note issue to a major shareholder.
Key terms of the convertible notes include:
- Conversion price: A$0.08 per share
- Interest rate: 9.5% per annum
- Term: 2 years
- Incentive: One unlisted option per share on conversion, exercisable at A$0.10 (subject to shareholder approval)
- Security: Equal priority with existing senior debt
- What are the main markets and applications served?
The Kentucky facility will serve growing demand in the U.S. for:
- PFAS filtration
- Industrial emissions control
- Wastewater treatment
These markets are driven by tightening environmental regulations. The plant complements Carbonxt’s existing powdered activated carbon operations in Georgia, giving the company strategic access to both gas-phase and liquid-phase activated carbon markets.
