Non-binding Deal with ALKEEMIA Signals Growth Risks Amid Expansion Plans
International Graphite Limited has reported pilot-scale testwork results exceeding purity targets for expandable graphite, underpinning plans for a European production facility.
- Pilot-scale purification testwork exceeds 99.5% purity target
- Partnership with ALKEEMIA S.p.A for graphite purification services
- Non-binding Letter of Intent signed for toll treatment and integration
- ALKEEMIA’s plant to scale from 200 t/y to 20,000 t/y by 2030
- International Graphite aims for 10,000+ t/y production capacity by 2027
Purification Breakthrough
International Graphite Limited (ASX, IG6) has announced encouraging results from pilot-scale purification testwork conducted by ALKEEMIA S.p.A at their Port Marghera facility in Italy. The testwork produced expandable graphite with purity levels exceeding the company’s target of 99.5%, reaching up to 99.98%. This milestone confirms the suitability of their graphite concentrates as feedstock for high-quality expandable graphite products.
Strategic European Facility Plans
The successful testwork supports International Graphite’s strategic ambition to establish a European-based expandable graphite production facility. The company has entered a non-binding Letter of Intent with ALKEEMIA to access toll treatment purification services and explore deeper business integration to enhance capital and operational efficiencies. ALKEEMIA’s existing industrial graphite purification plant, with a start-up capacity of 200 tonnes per year, is planned to scale up to 20,000 tonnes annually by 2030, offering significant growth potential.
Integrated Supply Chain and Production Growth
International Graphite is positioning itself as a key player in the western graphite supply chain by leveraging its Springdale Graphite Project in Western Australia. This deposit provides a secure and low-risk source of natural graphite concentrate, underpinning the company’s plans to operate micronising and expandable graphite facilities in both Australia and Europe by 2027. The targeted combined production capacity exceeding 10,000 tonnes per year aims to establish IG6 as a leading producer of value-added graphite products outside China.
Market Implications and Forward Outlook
The move to develop a European expandable graphite facility aligns with growing industrial demand for high-quality graphite products in the region, potentially reducing reliance on Asian supply chains. While the Letter of Intent with ALKEEMIA is non-binding and forward-looking statements carry inherent risks, the pilot test results provide tangible progress towards commercialisation. Investors will be watching closely as ALKEEMIA ramps up its purification capacity and as International Graphite advances its integrated production network.
Bottom Line?
International Graphite’s purification success sets the stage for a strategic European footprint in expandable graphite production.
Questions in the middle?
- When will the Letter of Intent with ALKEEMIA convert into binding agreements?
- How quickly can ALKEEMIA scale its purification plant to meet demand?
- What are the potential market impacts of increased European graphite production?
