International Graphite (ASX: IG6) has partnered with European chemical manufacturer Alkeemia to build a new graphite processing facility in Italy, marking a significant milestone in its strategy to create cost-competitive, fast-to-market processing capacity in key Western locations.
The joint venture development will be located within Alkeemia’s existing chemical manufacturing operations at Porto Marghera, near Venice, and will leverage the benefits of established infrastructure, integrated chemical supply, proven purification technology, and a skilled workforce that would otherwise require significant capital to set up.
Pilot-scale purification test work on feedstock from International Graphite’s Springdale operation near Collie in Western Australia has achieved higher than 99.9% carbon purity, validating the suitability of the purification process for high-specification graphite products.
Initial annual production of 10,000 tonnes is targeted, ramping up to 20,000tpa by 2030.
Minimising Supply Risk
The new facility will minimise supply risk by processing graphite concentrates that can be readily sourced from a variety of existing mining operations and trading houses.
It will directly address Europe’s need for secure domestic supply of processed graphite and tap into established distribution networks, with negotiations already underway with a specialist graphite sales firm.
The economics and costs of the facility as well as terms of binding joint venture agreements are targeted for completion by end May, and a final investment decision is expected in June.
Europe’s appetite for processed graphite is being driven by continued industrial demand, electromobility, and energy storage, with the European Union currently importing most of its graphite requirements, with China dominating world supply.
International Graphite expects onshore processing at the new Italian facility to address growing demand for secure domestic supply and reduced reliance on traditional offshore sources.
Graphite Processing Network
Managing director Andrew Worland said the Alkeemia partnership was a major step in the company’s plans to build a significant graphite processing network, adding a second production facility to its Springdale operations at Collie.
“We are delighted to consolidate our collaboration with Alkeemia—the company’s existing infrastructure, chemical platform, and highly-skilled team will significantly reduce capital cost, execution risk, and time to market, creating a resounding competitive advantage for this joint venture in a growing graphite market.”
Alkeemia chief executive officer Lorenzo Di Donato said the agreement would establish a “scalable and competitive European platform for high-specification graphite production, enabling greater security of supply for European industry”.
The two parties anticipate finalising a binding JV agreement by the end of May 2026, and a Final Investment Decision by June 2026.
