International Graphite and Arctic Graphite Unite to Build €5M Expandable Graphite Plant in Germany
International Graphite Limited has partnered with Arctic Graphite AS to establish a new expandable graphite facility in Germany, aiming to bolster European supply with an initial 3,000 tonnes per year capacity. Backed by a potential $10 million funding commitment, this venture marks a strategic push into critical mineral processing amid rising demand.
- 50/50 joint venture between International Graphite and Arctic Graphite AS
- Expandable Graphite Facility targeting ~3,000 tonnes per year production
- Estimated capital expenditure of €5 million with non-dilutive funding support
- Graphite Investment Partners LLC proposes up to $10 million funding
- Plans to operate two graphite facilities by 2027 producing ~10,000 tonnes annually
Strategic Joint Venture to Secure European Graphite Supply
International Graphite Limited (ASX, IG6) has announced a landmark cooperation agreement with Norwegian critical minerals developer Arctic Graphite AS to develop an expandable graphite processing facility in Germany. This 50/50 joint venture aims to address the growing demand for expandable graphite in Europe, a market currently reliant on imports, by establishing a domestic production hub with an initial capacity of approximately 3,000 tonnes per year.
The proposed facility, with a capital cost estimate of €5 million, is positioned to become one of the continent's most significant graphite processing sites. The partnership leverages Arctic Graphite’s operational expertise, supported by its major shareholder Leonhard Nilsen & Sønner AS (LNS), a seasoned mining and earthmoving contractor with deep roots in European graphite mining.
Funding and Technical Expertise Align
Backing the project’s financial foundation, Graphite Investment Partners LLC (GIP), a shareholder in Arctic, has issued a non-binding letter of interest to arrange up to $10 million in non-dilutive funding. This funding is intended to cover at least half of the facility’s capital costs and support the construction and ramp-up phases. GIP’s involvement underscores the critical importance of securing supply chains for expandable graphite, especially given Europe’s substantial consumption; estimated at around 30% of global demand outside China.
International Graphite will lead the technical, commercial, and environmental assessments, drawing on the expertise of ProGraphite GmbH and Hensen Graphite and Carbon Corp. These partners bring decades of graphite processing knowledge, ensuring the facility’s design maximizes capital efficiency and scalability. The company also aspires to operate a second graphite processing centre, the Collie Micronising Facility in Western Australia, targeting a combined output of roughly 10,000 tonnes annually by 2027.
Market Context and Industry Implications
Expandable graphite is a high-value product used in flame retardants, foils, and other industrial applications. Its production involves treating natural flake graphite with intercalating agents, which expand the material significantly when heated. Europe’s current lack of domestic expandable graphite production presents a strategic vulnerability amid rising industrial demand and geopolitical supply risks.
By establishing a local supply chain, International Graphite and its partners aim to reduce dependency on imports, enhance supply security, and capture a growing market opportunity. The involvement of experienced players like LNS, ProGraphite, and Hensen adds credibility and operational depth to the venture.
Next Steps and Outlook
The joint venture partners will proceed with detailed feasibility studies, permitting, and securing binding agreements for feedstock supply and product offtake. The final decision to incorporate the joint venture and proceed with construction will depend on the outcomes of these assessments and financing arrangements. Meanwhile, International Graphite’s management highlights the strategic alignment and complementary strengths of the partnership as key to accelerating project delivery and market entry.
Bottom Line?
As International Graphite advances its European expansion, the graphite market will watch closely for binding financing and operational milestones that could reshape regional supply dynamics.
Questions in the middle?
- Will the non-binding funding commitments from Graphite Investment Partners materialize into firm financing?
- How quickly can the joint venture secure permits and commence construction in Germany?
- What impact will the new expandable graphite supply have on European market prices and import reliance?
