International Graphite and Alkeemia Form JV to Build European Graphite Processing Hub Targeting 2027 Production

Joint Venture to Anchor European Graphite Supply Chain

International Graphite Ltd (ASX:IG6) has taken a decisive step to establish a European graphite processing hub through a joint venture with Italian chemical giant Alkeemia S.p.A. The JV, located at Porto Marghera near Venice, aims to create a capital-efficient graphite processing operation targeting first production in the second half of 2027 and a final investment decision by Q3 2026.

The partnership leverages IG6’s graphite processing expertise alongside Alkeemia’s tier-one industrial infrastructure, including a recently upgraded hydrofluoric acid (HF) production platform critical for graphite purification. Alkeemia holds a 51% stake in the JV, with IG6 holding 49%, and profits split evenly. IG6’s capital commitment is approximately A$12 million, while Alkeemia contributes land under a 99-year lease and operational support.

Strategic Importance Amid EU Supply Chain Pressures

The JV’s strategic rationale is clear: Europe currently imports almost all processed graphite from China, exposing its supply chain to geopolitical risk, especially after China’s export restrictions in late 2023. The JV aligns with the EU’s Critical Raw Materials Act, which designates graphite as a strategic raw material and targets 40% domestic processing of such materials by 2030.

By situating graphite processing alongside Alkeemia’s purification facilities, the JV aims to provide European customers with high-purity graphite products that meet regulatory standards and reduce dependence on Chinese supply. The operation will produce a range of graphite products tailored for industrial, energy storage, advanced manufacturing, and defence sectors.

Project Scale, Costs, and Financial Snapshot

The initial phase targets a production capacity of 10,500 tonnes per year, with equipment capable of expansion to 15,000 tonnes funded through project cashflows. Construction is planned to begin in Q3 2026, pending final investment decision and funding arrangements focused on minimising shareholder dilution.

IG6’s 50% share of the project’s financials, based on current market conditions, shows sales revenue of A$20.1 million, all-in sustaining costs of A$7.9 million, and EBITDA of A$12.2 million. The total capital cost estimate for IG6’s portion is about A$12 million, covering plant equipment, construction management, and commissioning.

Operational Advantages and Market Positioning

The JV benefits from Alkeemia’s existing industrial site, which includes warehousing, utilities, and a skilled workforce, allowing for a low-cost, low-risk start-up. Direct port access at Porto Marghera reduces logistics costs and lead times for importing graphite concentrate feedstock and exporting finished products.

Testwork conducted at IG6’s Collie facility in Western Australia and Alkeemia’s purification pilot plant validates the technical feasibility and product quality, with graphite products meeting specifications for high purity and industrial applications. The JV is positioned to adapt product lines to evolving market demands.

Securing Feedstock and Market Demand

The project requires approximately 10,800 tonnes of graphite concentrate annually, a fraction of global supply outside China. IG6 has agreements with international trading houses to source diversified feedstocks, mitigating supply risk. Market research anticipates graphite demand doubling by 2040, driven by battery and industrial applications.

Pricing for micronised graphite products remains robust, with spot prices for high-purity fine graphite reaching up to US$9,243 per tonne. The JV intends to formalise sales and marketing agreements to capitalise on growing demand in energy storage, advanced manufacturing, and defence sectors.

Governance and Funding Outlook

The JV will be governed by a four-person board equally appointed by IG6 and Alkeemia, with a rotating chairmanship. Operational leadership is expected to come from Alkeemia’s experienced management team. Project financing discussions are ongoing, involving cornerstone investors and potential EU funding, with a clear aim to optimise shareholder returns and limit equity dilution.

This joint venture represents a significant step for IG6 in establishing a European graphite processing footprint and addressing critical supply chain vulnerabilities. The coming months will be pivotal as the JV moves toward final investment decision and construction commencement.