TOMI Environmental Solutions and Carbonium Core announced a definitive agreement to merge, aiming to secure domestic supply chains for nuclear-grade graphite and critical defense materials. The merger, signed on June 29, 2026, combines TOMI's decontamination technology with Carbonium's coal-to-graphite conversion capabilities. This strategic move addresses U.S. reliance on foreign imports, particularly from Russia and China, for essential strategic materials.

Strategic Merger Details

The merger is driven by the need to onshore the production of ultra-high-purity graphite, a critical component for 4th-generation nuclear reactors and defense applications. Carbonium Core is developing technology to convert low-grade coal into nuclear-grade graphite, licensed from Oak Ridge National Laboratory (ORNL). The U.S. Department of Energy, through its Hydrocarbon and Geothermal Energy Office (HGEO), sponsors ORNL's coal-to-production projects to mitigate supply chain vulnerabilities.

Production and Pilot Testing

Carbonium has transitioned from lab-scale R&D to pilot-scale testing at its facility in Oneida, Tennessee. The pilot phase focuses on validating the conversion process under realistic conditions, optimizing protocols, and ensuring reproducibility. Following successful pilot testing, the company plans to move to full-scale commercial production, which will involve high-volume automation and stringent quality assurance systems.

Defense and Energy Applications

The combined company targets the production of graphite for Small Module Reactors (SMRs) and defense applications, including fighter aircraft, submarines, and artillery. Graphite serves as a neutron moderator and protective coating in nuclear reactors, ensuring safety and integrity. The merger aligns with national priorities to reduce dependency on foreign sources and strengthen domestic manufacturing capabilities.

Leadership and Market Outlook

Dr. Halden Shane, CEO of TOMI Environmental Solutions, emphasized the synergies between the two companies, highlighting the potential to produce graphene and lithium for biosecurity applications. Tennessee Senators Ken Yager and Jessie Seal expressed support for the project, citing economic growth and job creation opportunities in the region. The merger positions TOMI and Carbonium to capitalize on the growing demand for reliable, carbon-free energy driven by AI and electrification trends.

TOMI Environmental Solutions, Inc. reported preliminary second-quarter 2026 revenue of approximately $2.3 million, representing a 124% increase year-over-year. The company’s performance was driven by accelerating momentum in its high-margin razor-and-blade business model, supported by a growing installed base of SteraMist iHP systems and recurring revenue from BIT Solution and related consumables. Combined with open orders of $6.2 million, TOMI has already surpassed its full-year 2025 revenue, demonstrating the scalability of its strategic initiatives across equipment, services, and consumables.

Financial Highlights

Gross margin expanded to 70% from 66% in the prior-year quarter. Key operational metrics for the second quarter include significant growth across mobile capital equipment, accessories, and support services. The company also noted that U.S. service provider rental activity increased 60% compared with all of 2025, driven by rising demand for flexible, on-demand iHP deployment.

Strategic Developments

TOMI has begun formally tracking a dedicated enclosure category as it scales delivery of iHP decontamination chambers for medical device manufacturing and life sciences facilities. The newly launched NV+ system was sold in a customized configuration to a major healthcare facility in Minnesota, with delivery scheduled for the third quarter. This order is expected to generate recurring revenue through BIT Solution and service contracts.

The company expanded its global reach by adding three new distributors covering the United States, South Africa, and Argentina, along with additional South American territories. Additionally, a prominent American healthcare company expanded a custom engineering contract into a significantly larger automation project late in the quarter. SteraMist was named the Disinfection and Decontamination Products Company of the Year for 2026 by Medical Tech Outlook.