Quantum Graphite Secures Major Project Status and Advances $300M US Financing

Major Project Status Elevates Quantum Graphite’s Strategic Profile

Quantum Graphite Limited (QGL) has achieved a pivotal endorsement from the Australian Federal Government with the granting of Major Project Status to its Quantum-Sunlands Eyre Peninsula Graphite Hub (EPG Hub). This designation, approved for an initial three-year term by the Minister for Industry and Science, Hon Ed Husic MP, underscores the national significance of the project within Australia's Critical Minerals and Battery Storage Strategies.

The EPG Hub integrates the full graphite supply chain, from mining at the fully permitted Uley 2 project on South Australia’s Eyre Peninsula, through processing and refining, to logistics and manufacturing. The joint venture with Sunlands Energy Co. also encompasses the production of long-duration thermal energy storage cells, positioning the hub at the nexus of critical mineral supply and emerging energy storage technologies.

Advancing US$300 Million Financing with US EXIM Bank

Parallel to the Major Project Status, Quantum Graphite is advancing its US$300 million financing application with the US Export-Import Bank (EXIM) to fund the Project Utile supply chain, including the Uley 2 mining project and a graphite purification and refining facility in South Carolina. Following the submission of the Direct Loan and Guarantee Final Application in December 2024, the company has engaged in extensive due diligence discussions, including high-level meetings in Washington D.C. and South Carolina.

The financing is critical to meeting the offtaker MRI Trading AG’s target of delivering 100,000 tonnes per annum of high purity (>99.6%) graphite by early 2027. The establishment of an Australia-US end-to-end supply chain aims to secure a scalable and uninterrupted supply of strategic graphite to one of the world’s largest markets.

Patent Grant Strengthens Thermal Energy Storage Prospects

Sunlands Energy Co., Quantum Graphite’s joint venture partner, received an Australian patent for its Thermal Battery and Electricity Generation System, specifically its TES Graphite Cell technology. This patent, with a priority date of November 2017, complements recent grants in the USA and South Africa and solidifies the joint venture’s foothold in the rapidly expanding global energy storage market.

Energy storage installations surged nearly 300% in 2023, with forecasts projecting over 20% annual growth through 2030. The joint venture’s technology, leveraging coarse flake graphite from Uley, is well positioned to capitalize on this demand, particularly for long-duration energy storage solutions critical to grid decarbonization.

Financial and Operational Highlights

Quantum Graphite reported receipt of a $472,000 Australian R&D rebate for its 2024 financial year, reflecting ongoing innovation efforts in high purity graphite processing and thermal energy storage media development. The company also settled legal proceedings with former auditors Grant Thornton, resolving outstanding disputes related to the 2020 financial statements.

The Uley 2 project feasibility study reveals robust financial metrics, including an estimated total undiscounted cash flow of nearly A$1 billion, capital expenditure of A$152.7 million, and production capacity of 100,000 tonnes per annum of graphite concentrate. The company maintains a healthy cash position of approximately A$2.66 million at quarter-end, supported by a $6 million loan facility and ongoing related party payments.

Strategic Outlook

With Major Project Status in hand and critical financing negotiations underway, Quantum Graphite is well placed to accelerate its development timeline and meet growing global demand for high purity graphite and energy storage solutions. The integration of mining, processing, and advanced thermal storage technology within a single supply chain offers a compelling value proposition amid the global energy transition.