International Graphite (ASX: IG6), an emerging supplier of processed graphite products, including active anode materials, has entered into a Co-operation Agreement with Arctic Graphite AS and Graphite Investment Partners LLC (GIP) to develop an expandable graphite processing facility (EGF) in Europe. The preferred location for the EGF is Germany, and the project will operate as a 50/50 joint venture between International Graphite and Arctic.
The facility is projected to have a production rate of approximately 3,000 tonnes per year, with an estimated capital cost of €5.0 million. GIP has committed to arranging at least 50% of the capital cost in non-dilutive funding and has issued a non-binding letter of interest to arrange up to $10 million in funding. Arctic’s shareholders include Leonhard Nilsen & Sønner AS (LNS), a Norwegian earthmoving and mining contractor with graphite mining experience. International Graphite will manage the technical, commercial, economic and environmental assessment of the project with assistance from ProGraphite GmbH and Hensen Graphite and Carbon Corp.
According to International Graphite, this facility would be one of the most significant graphite facilities in Europe, addressing security of supply concerns amid strong industrial demand growth. Managing Director and CEO Andrew Worland highlighted the partnership as an endorsement of the company’s capability and strategy, noting the partners’ deep knowledge of the European graphite market. The company aspires to operate two graphite facilities by 2027, including its Collie Micronising Facility, with a combined production capacity of approximately 10,000 tonnes of high-value graphite products per annum.
Expandable graphite is a processed form of natural flake graphite used in foils and flame retardants. Europe currently imports most of its expandable graphite, making a domestic supply source highly desirable. Hensen Graphite and Carbon is considering becoming a shareholder in the EGF, subject to due diligence. International Graphite cautions that there is no assurance that such shareholding will be achieved.
