How Swedish Algae Factory Is Powering Beauty and Battery Innovation with Microalgae

Swedish Algae Factory is redefining how we harness nature’s intelligence, from the depths of microscopic marine life to the shelves of global beauty brands and the cores of next-gen batteries.

Swedish Algae Factory, the world’s first company to commercialize large-scale production of diatoms—a group of microalgae responsible for nearly 20% of Earth’s oxygen—has taken a significant leap forward. With its expanded production facility in western Sweden now fully operational, the company is scaling up its patented material, Algica®, to meet growing demand from the personal care and energy sectors.

Backed by fresh funding from investors including Chalmers Ventures, Swedish Algae Factory is doubling down on the potential of diatom shells: intricate, silica-based structures with exceptional properties that can outperform synthetic materials in light manipulation, absorption, and controlled release.

A Bio-Based Innovation Engine

We’re incredibly proud to operate a fully functioning, climate-conscious production site that serves customers globally.

We use recycled nutrients and captured carbon dioxide for cultivation, and even our organic by-products are upcycled into biogas and eco-fertilizers. In the future, they could find use in food, cosmetics, and animal feed as well.

says Sofie Allert, CEO and co-founder of Swedish Algae Factory.

The company’s facility is designed with scale in mind. It includes a 2,300 m² greenhouse containing vertically layered raceway ponds, offering more than 3,500 m² of cultivation surface. Plans are in place to scale this up to 10,000 m², significantly boosting output.

From Skincare to Solar Cells

Algica®, the material at the heart of this expansion, is already used in over 60 personal care products globally. Its performance benefits have caught the attention of larger beauty brands, with commercial-scale partnerships kicking off in 2025. The material offers natural moisture retention, light reflection, and pollutant absorption—qualities that make it a potent, sustainable alternative to traditional skincare ingredients.

But its capabilities don’t stop at cosmetics. In tests, Algica has enhanced the efficiency of solar panels and improved energy-storage capacity in lithium-ion batteries. New R&D findings suggest it could also replace harmful chemicals in medical applications like wound care and catalyst supports, positioning Algica as a multi-sectoral game-changer.

Fueling the Next Phase of Growth

To support this scaling and push new frontiers, Swedish Algae Factory has secured €3 million in additional capital, comprised of equity, grants, and loans. Investors see the company as a standout among deep-tech ventures.

Scaling while already generating revenue from commercial clients is rare in this space.

The potential for diatom shells to replace harmful chemical inputs across industries is exactly the kind of breakthrough we aim to back.

says Jonas Bergman, Investment Director at Chalmers Ventures.

As Swedish Algae Factory enters this new growth phase, it is actively seeking new partners—investors and corporations alike—who share its vision of building a cleaner, smarter industrial future powered by nature’s own nanotechnology.

Allert concludes

We believe Algica’s potential is just beginning to unfold. We’re inviting others to join us in shaping the technologies and ingredients that will define tomorrow.