How International Graphite’s German JV Could Reshape European Graphite Supply

European Expansion Marks Strategic Milestone

International Graphite Limited (ASX – IG6) has taken a significant step in its global growth strategy by signing a cooperation agreement with Arctic Graphite AS to develop an expandable graphite facility in Germany. Targeting an annual production capacity of approximately 3,000 tonnes, the facility is estimated to require a capital investment of €5 million and aims to commence operations by 2027. This venture represents IG6's first offshore production facility and positions the company to serve the European Union's substantial demand for expandable graphite, a critical material used in flame retardants, electronics insulation, and green steel applications.

The joint venture will be equally owned by IG6 and Arctic Graphite AS, whose shareholders include Norwegian mining and construction giant Leonhard Nilsen & Sønner AS (LNS), bringing valuable operational expertise from Europe's largest natural flake graphite mine. Technical support will be provided by German graphite specialists ProGraphite GmbH and Hensen Graphite and Carbon, the latter potentially taking an equity stake in the project. Funding support is bolstered by Graphite Investment Partners LLC, a shareholder of Arctic, which has committed to arranging at least half of the capital cost through non-dilutive means and expressed interest in up to $10 million in funding.

Advancing Australian Operations and Market Development

Back home in Western Australia, IG6 is progressing its Collie micronising facility, Australia's first commercial-scale operation of its kind, designed to produce micronised graphite materials for global markets. Construction activities have advanced with the appointment of Prosser Built for detailed design and the procurement of key processing equipment underway. Supported by a $4.5 million grant from the WA Government’s Collie Industrial Transition Fund, the facility is planned to start operations in 2027 with an initial capacity of 4,000 tonnes per annum, scalable to 7,500 tonnes.

Meanwhile, the Springdale Graphite Project remains central to IG6’s vertically integrated 'mine to market' strategy. Feasibility studies for the mine and concentrator are ongoing, with a final investment decision expected by the end of 2026. The project aims to secure a long-term supply of natural graphite feedstock for downstream processing facilities worldwide.

Strategic Partnerships and Corporate Developments

IG6’s global ambitions are further supported by positive feedback from the US Department of Defense regarding a proposal for up to US$7.5 million in feasibility study funding. This aligns with US policy efforts to reduce reliance on non-allied sources of critical minerals, highlighting Western Australia as a secure supplier. The company is also exploring downstream processing opportunities in Savannah, Georgia, and strengthening relationships in key Asian markets, including Japan and Korea, evidenced by recent meetings with major trading house Marubeni Corporation.

On the corporate front, major shareholder Comet Resources Limited sold 27.5 million IG6 shares post-quarter, using proceeds to repay $1.125 million in debts owed to IG6. This transaction led to the voluntary resignation of director Matthew O’Kane. At quarter-end, IG6 held cash reserves of $1.08 million, with $10.5 million in government grants contracted but yet to be drawn, underpinning ongoing development activities.

Navigating Market Dynamics and Future Prospects

The recent US Department of Commerce imposition of a 93.5% anti-dumping tariff on certain Chinese graphite imports underscores the geopolitical shifts reshaping critical mineral supply chains. This development is expected to enhance demand for graphite sourced from trusted jurisdictions like Australia, reinforcing IG6’s strategic positioning. As the company advances its multi-jurisdictional projects, the integration of European, Australian, and potential US operations could establish IG6 as a diversified supplier of high-value graphite products for industrial and battery markets globally.