Circular economy technology company LD Carbon announced today that it has raised $28 million in a Series C funding round led by Toyota’s growth fund, Woven Capital. The company will use the investment to scale its operations recycling end-of-life tires and material from end-of-life vehicles into recovered carbon black and pyrolysis oil.

Founded in 2017, South Korea-based LD Carbon produces recovered carbon black (rCB) and tire pyrolysis oil (TPO) from waste tires. Carbon black, produced by the combustion of heavy petroleum products, is used as reinforcing agent in automobile tires, protective coatings, and as pigment. According to the EU’s Community Research and Development Information Service, about 15 million tons of virgin carbon black is produced every year and every ton is responsible for 1.5-2.5 tons of CO2. LD Carbon said another 1.6 million metric tons come from the 28% of all waste tires that are burned. Of the one billion tires discarded each year, the EU reports, only half are recycled.

LD Carbon said its pyrolysis and material recovery manufacturing technology provides nearly 100% recovery of waste tires, supporting automakers that are increasingly adopting recycled content for manufacturing, driven by new net-zero targets, emissions requirements, and European Commission proposals calling for car manufacturers to use 25% recycled plastic content.

Seong Mun Baek, CEO and Co-Founder of LD Carbon said:

“Our mission is to dramatically improve the sustainability profile of the automotive industry, while lowering costs. Partnering with Woven Capital and other strategic investors will give us invaluable insights into scaling operations to support global OEMs as they seek to offer more sustainable vehicles to discerning consumers and business customers.”

According to the company, the new financing comes as it is investing in the construction of Asia’s largest tire pyrolysis plant. LD Carbon’s existing plant in Gimcheon, South Korea, has an annual capacity of over 7,000 tons 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 its tire pyrolysis oil. The company’s new pyrolysis plant in Dangjin City, Chungcheongnam-do, is slated to be complete in 2024, with an annual capacity of 50,000 tons of end-of-life tires turned into 23,000 tons of TPO, 20,000 tons of rCB, and 7,000 tons of other valuable gas and materials. LD Carbon is also co-developing key product specifications alongside industry leaders like several major global tire makers.

Meritz Securities, Investwith, Industrial Bank of Korea, Hyundai Motor Group ZER01NE, Elohim Partners and New Main Capital also participated in the round.

Prashant Bothra, Woven Capital Principal, who is joining the LD Carbon board, said:

“LD Carbon is solving a tough chemistry problem that continues to challenge manufacturers across the automotive supply chain as they face increasing pressure to embrace sustainability goals. With a major plant under construction, the company is scaling their proven technology to maximize productivity and reduce the cost of creating high-performance recovered carbon black, offering substantial value compared to virgin materials.”