Legal Dispute and Funding Needs Loom as GCM Advances VHD Graphite Tech

Pilot Plant Commissioning Accelerates Commercialisation

Green Critical Minerals Ltd (ASX: GCM) has reported significant progress in the March 2025 quarter, notably completing construction and commissioning of Line 1 at its VHD Graphite pilot plant well ahead of schedule. This early completion enabled the production of initial prototype graphite blocks, marking a critical milestone in the company’s commercialisation pathway.

The pilot plant is designed to produce two product lines: smaller VHD blocks tailored for high-performance computing cooling applications, and larger blocks aimed at traditional graphite markets and renewable energy thermal storage. The successful early production of smaller blocks positions GCM to address growing demand in AI servers, data centres, and advanced electronics.

Record Density and Thermal Performance

Testing of the first 12 prototype blocks yielded exceptional density results, with an average density of 2,011 kg/m³ and a peak density reaching 2,071 kg/m³. This peak surpasses previous VHD technology records and significantly exceeds industry benchmarks for nuclear and electrode graphite, which typically range between 1,550 and 1,900 kg/m³.

Beyond density, the thermal diffusivity of VHD Graphite was measured at a peak of 288 mm²/s, outperforming conventional heat sink materials such as copper (111 mm²/s), aluminium (97 mm²/s), and standard graphite (96 mm²/s). This breakthrough confirms VHD Graphite’s superior heat dissipation capabilities, critical for managing thermal loads in AI and high-performance computing environments.

In addition, the material’s anisotropic properties provide a directional heat dissipation advantage, enhancing precision cooling in data centres and electronics. The lightweight nature of VHD Graphite further amplifies its appeal as a next-generation thermal management solution.

Strategic Appointments and Partnerships

To support market entry and revenue growth, GCM appointed Chris Whiteley as Head of Sales and Marketing. Whiteley’s role will be pivotal in driving customer engagement and product qualification as the company transitions from pilot production to commercial scale.

Subsequent to the quarter, GCM issued first samples to a prospective customer and signed a collaboration agreement with a sustainability-focused data centre operator, underscoring growing commercial interest in VHD Graphite technology.

Advancements in Project Portfolio

On the exploration front, GCM completed its Stage 3 earn-in for the McIntosh Graphite Project, securing an 80% interest after investing over A$4 million. The company is progressing a pre-feasibility study expected to conclude in early Q2 2025, which will further define the project’s development potential.

Additionally, GCM is revisiting the commercialisation potential of high-value mullite fibres from its Torrington Minerals Project. Leveraging recent technology acquisitions and the appointment of ceramics expert Professor Andrew Ruys, the company aims to unlock new advanced material opportunities.

Financial Position and Legal Matters

GCM ended the quarter with a cash balance of A$1.32 million and reported ongoing exploration expenditures totaling approximately A$235,000. The company remains confident in its ability to attract strategic funding to support its commercialisation and production milestones.

Meanwhile, legal proceedings against NH3 Clean Energy continue, with mediation efforts underway concerning alleged breaches of warranties under an earn-in agreement. The outcome of these proceedings remains uncertain but is being actively managed by the company.