Can Quantum Graphite Secure Funding to Unlock Eyre Peninsula Graphite Potential?

Eyre Peninsula Graphite Hub Development

Quantum Graphite Limited is advancing its ambitious Quantum-Sunlands Eyre Peninsula Graphite Hub (EPG Hub), a fully integrated graphite supply chain project that includes mining, processing, refining, and logistics. The Australian Federal Government’s designation of the EPG Hub as a Major Project underscores its strategic importance. During the quarter, the company engaged closely with South Australian government agencies to shortlist suitable port-adjacent sites that meet critical infrastructure and operational criteria.

The EPG Hub is a joint venture with Sunlands Energy Co., which brings thermal energy storage technology to the project, potentially enhancing the hub’s energy efficiency and sustainability. The hub aims to become a global reference price point for high-quality graphite concentrate, leveraging its proximity to key export markets including North America, Europe, the Middle East, and emerging battery manufacturing hubs in Southeast Asia.

Financing Momentum for Uley 2 Project

Quantum Graphite has attracted growing interest from financiers for its Uley 2 project, a cornerstone of the EPG Hub. Alongside the US EXIM Bank, three additional investment funds, two with strategic ties to the lithium-ion battery supply chain, have been granted access to the company’s data room for due diligence. This signals confidence in the project’s potential to supply secure, high-grade flake graphite concentrate to purification facilities critical for battery anode materials.

While due diligence is ongoing, the company’s management has actively engaged with US EXIM Bank officials in Washington to facilitate the process. The outcome of these financing discussions will be pivotal in underpinning the next development phase of the Uley 2 project.

Exploration and Geological Insights

Quantum Graphite’s extensive geophysical surveys and drilling programs have generated new data that challenge previous geological models of the Uley region. The company’s geology team is finalizing a comprehensive review that integrates historical and recent data, including airborne electromagnetic surveys and diamond drilling results. This analysis is expected to refine the understanding of graphite mineralisation structures and expand exploration targets.

Updated exploration results and their implications for resource estimates are anticipated in the coming quarter, potentially enhancing the project’s value proposition.

Purification Testwork and Product Quality

During the quarter, Quantum Graphite received purification testwork results from prospective customers who applied acid leaching treatments to Uley flake graphite. These tests aim to achieve the ultra-high purity levels required for advanced technology applications, particularly lithium-ion battery anode precursors. Some of the data are non-confidential and are currently under review, with a formal release expected by the end of August 2025.

Successful purification outcomes would strengthen the company’s position in supplying premium graphite products to high-growth markets.

Financial Position and Outlook

As of 30 June 2025, Quantum Graphite held approximately A$1.58 million in cash, supported by a A$6.19 million financing facility from Chimaera Capital Limited. The company reported operating cash outflows of around A$1.03 million for the quarter, reflecting ongoing development and administrative expenses. Management acknowledges the need for additional capital and plans to raise equity to sustain operations and advance project milestones.

The company’s updated Uley 2 feasibility study highlights robust financial metrics, including a projected total undiscounted cash flow nearing A$1 billion and production costs competitive within the graphite sector. These fundamentals, combined with strategic partnerships and government support, position Quantum Graphite for potential growth as global demand for battery materials intensifies.