International Graphite Limited has inked a non-binding deal with Wogen Pacific to supply micronised graphite and feedstock for its Collie facility, targeting Asia-Pacific markets with an initial three-year term.
- Non-binding agreement with Wogen Pacific for graphite sales
- Minimum 3,000 tonnes per year micronised graphite purchase
- Wogen to supply up to 10,000 tonnes per year flake graphite feedstock
- Access to Wogen’s supply chain finance solutions
- Initial term of three years with spot pricing
Strategic Partnership Targets Asia-Pacific Market Expansion
International Graphite Limited (ASX:IG6) has taken a significant step towards commercialising its Collie Micronising Facility in Western Australia by signing a Heads of Terms agreement with Hong Kong-based Wogen Pacific Limited. The deal positions Wogen as the exclusive distributor of at least 3,000 tonnes per year of micronised graphite to Asia-Pacific customers, a region highlighted for its rapid growth in advanced manufacturing materials.
The agreement, while currently non-binding, outlines a clear pathway for Wogen to supply up to 10,000 tonnes annually of flake graphite concentrate feedstock to IG6’s Collie facility, supporting planned production scale-up. This dual supply-and-sales arrangement aims to underpin IG6’s operational ramp-up and market penetration, particularly in key markets like Japan and South Korea, where demand for high-spec industrial graphite is accelerating.
Commercial Terms and Financial Support
Sales under the agreement will be priced on a spot basis or as otherwise negotiated, with an initial term of three years commencing from the start of commercial production. Wogen’s involvement extends beyond sales and supply; IG6 will benefit from access to Wogen Pacific’s supply chain finance solutions, potentially enhancing capital efficiency and operational flexibility as the Collie facility moves towards full-scale production.
IG6’s Managing Director Andrew Worland emphasised the strategic value of partnering with a seasoned player like Wogen, citing its extensive global trading, logistics, and marketing expertise. Wogen’s CEO John Craig highlighted the partnership’s potential to bring a new supply of high-purity industrial graphite to the Asia-Pacific market, reinforcing the region’s standing as a hotspot for advanced manufacturing materials.
Positioning IG6 Amidst Industry and Regional Dynamics
This agreement complements IG6’s broader strategy of developing a capital-efficient graphite processing platform that includes its European joint venture with Alkeemia and the Springdale Graphite Project in Western Australia. The Collie facility is on track for commercial production, following recent construction milestones and capital raises to accelerate development $4 Million to Boost European and Australian Processing. By securing both feedstock supply and a committed sales channel, IG6 aims to mitigate typical mid-stream risks and strengthen its position in a market increasingly driven by supply chain security concerns.
While the Heads of Terms remain non-binding and subject to final contracts before commercial production, the framework establishes a foundation for IG6 to scale operations efficiently. The agreement’s governance under Singapore law and provisions for termination in case of material breach indicate a balanced commercial approach, reflecting the parties’ intent to build a robust, long-term partnership.
Bottom Line?
IG6’s collaboration with Wogen Pacific marks a pivotal step in securing both supply and sales channels for its Collie facility, setting the stage for market entry in Asia-Pacific’s growing graphite sector.
Questions in the middle?
- Will IG6 and Wogen finalize binding agreements ahead of Collie’s commercial production?
- How will supply chain finance from Wogen impact IG6’s capital efficiency during ramp-up?
- Can IG6 leverage this partnership to expand beyond the initial 3,000 tonnes per year sales commitment?