International Graphite (ASX: IG6) has announced a partnership with Arctic Graphite AS to develop an expandable graphite facility (EGF) in Germany. This initiative supports the development of a European critical metals supply chain, addressing the region’s need for secure mineral resources. International Graphite is a Western Australia-based graphite specialist focused on mine-to-market graphite and battery anode material production. The company is expanding globally after gaining recognition for its vertically integrated operations in WA.
Under the collaboration, Arctic Graphite shareholder Graphite Investment Partners has agreed to coordinate funding for at least 50% of the facility’s estimated $8.95 million capital cost, with a non-binding letter of interest to arrange up to $10 million in total funding. The partners anticipate commencing operations at the new plant in 2027, aiming to meet approximately 10% of Europe’s expandable graphite consumption by producing around 3,000 tonnes of product annually.
International Graphite will oversee the initial technical, commercial, economic, and environmental assessments for the EGF. Future plans include establishing a 50/50 joint venture with Arctic to finance, build, and operate the facility. The company will leverage the expertise of European specialists like ProGraphite, Hensen, and LNS, ensuring a streamlined and efficient project.
The project will primarily focus on strengthening Europe’s access to critical minerals amid rising geopolitical tensions and supply chain vulnerabilities. The EU currently relies heavily on graphite imports, with China supplying about 40% of its needs. With the increasing demand for electromobility and energy storage, analysts project that the EU’s graphite needs will reach 480,000 tonnes by 2030. International Graphite expects both the EGF and Collie Micronising Facility to be operational by 2027, with a combined annual capacity of around 10,000 tonnes of high-grade graphite products.
