International Graphite Limited has made significant strides in its global graphite strategy, signing a German joint venture and securing $3 million in US institutional funding to support its expanding mine-to-market operations.
- Cooperation agreement signed for 3,000 t/y expandable graphite plant in Germany
- Graphite Investment Partners commits to at least 50% non-dilutive funding for German JV
- Collie micronising facility land secured and development applications submitted
- Institutional investment of up to $3 million from US-based Pioneer Resource Partners
- Australia–US Critical Minerals Framework validates strategic graphite supply plans
Strategic Expansion in Europe
International Graphite Limited (ASX – IG6) has taken a decisive step forward in its ambition to become a global graphite supplier by signing a cooperation agreement with Arctic Graphite AS to develop an expandable graphite manufacturing plant in Germany. Targeting an initial production capacity of approximately 3,000 tonnes per annum, the facility is estimated to require a capital investment of €5 million, with production expected to commence in 2027.
Backing this venture, Graphite Investment Partners LLC, a shareholder of Arctic Graphite, has committed to arranging at least half of the capital cost through non-dilutive funding, signaling strong financial support without diluting existing shareholders. This partnership also includes access to proven processing intellectual property and technology, enhancing the project's feasibility and commercial prospects.
Progress on Australian Processing Hub
Domestically, International Graphite is advancing its Collie micronising facility in Western Australia, securing approximately 6,000 square meters of land in an established industrial precinct. Development applications have been submitted, and detailed plant design is nearing completion. This facility aims to produce a range of graphite powders for industrial applications, including specialty graphite for lubricants and advanced materials, with an initial capacity designed to scale up to 75,000 tonnes per annum.
The Collie project benefits from significant Western Australian Government grants totaling $12.5 million, underscoring governmental support for critical minerals development. Early engagement with potential customers is progressing well, and interim operations will utilize third-party feedstock until the company’s Springdale mine begins production.
Securing Institutional Capital and Strategic Validation
International Graphite has also secured institutional investment of up to $3 million from US-based Pioneer Resource Partners LLC. This capital injection is earmarked to support ongoing feasibility studies at the Springdale Graphite Project, advance graphite processing operations, and provide working capital. The company has already drawn down $800,000 of this funding.
These developments align with the recently signed Australia–US Critical Minerals Framework, a landmark agreement between the two nations aimed at securing supply chains for minerals essential to economic growth and energy transformation. The framework notably highlights graphite as a mineral with significant supply risk, particularly for the US, which currently relies heavily on imports from China.
Corporate and Market Context
During the quarter, International Graphite’s major shareholder, Comet Resources Ltd, sold 27.5 million shares, using proceeds to repay $1.125 million in debts owed to International Graphite. This transaction led to the resignation of board member Matthew O’Kane. The company ended the quarter with cash on hand of $0.9 million and anticipates continued operations supported by the institutional investment and expected government grants.
International Graphite’s mine-to-market strategy is anchored by the 100% owned Springdale Graphite Project in Western Australia, with feasibility studies progressing for both the mine and concentrator. The company is also exploring potential expansion into the US market, including a downstream processing facility near Savannah, Georgia, to supply secure Australian-fed graphite products domestically.
Outlook
With a clear focus on delivering two processing plants by 2027 and leveraging proven technologies alongside strategic partnerships, International Graphite is positioning itself to meet growing global demand for battery and industrial graphite. The company’s integrated approach from mining through to advanced processing reflects a sophisticated response to geopolitical supply risks and market opportunities.
Bottom Line?
International Graphite’s expanding footprint and funding momentum set the stage for a pivotal growth phase amid rising global graphite demand.
Questions in the middle?
- What are the timelines and milestones for finalising the German JV and commencing production?
- How will International Graphite manage funding needs beyond the current institutional investment and government grants?
- What are the prospects and challenges for establishing the proposed US downstream processing facility?