International Graphite Advances Growth Strategy with European Expansion and US Market Focus

International Graphite (ASX: IG6) has reported steady progress across its vertically integrated ‘mine-to-market’ graphite strategy during the June 2025 quarter, with significant milestones achieved in Europe, Australia and North America.

The company said its focus remained on establishing a diversified portfolio of downstream processing facilities that will be underpinned by its 100%-owned Springdale graphite resource in Western Australia.

International Graphite believes the ongoing trade actions in the US, along with strong appetite from Japanese and Korean manufacturers, validate its decision to expand its footprint beyond Australia.

Expandable Graphite Partnership

Earlier this week, the company signed a co-operation agreement with Arctic Graphite AS and Graphite Investment Partners LLC (GIP) to establish a new facility in Germany for producing expandable graphite, a critical material used in construction, electronics, batteries, and green steel.

The proposed operation would be one of the few domestic sources of expandable graphite in the EU, which currently consumes around 30% of global supply outside China.

From 2027, the plant is expected to produce 3,000 tonnes of expandable graphite annually at a capital cost estimate of €5 million, with GIP committed to arranging at least 50% of the funding through non-dilutive sources.

Chief executive officer Andrew Worland said the German facility marked an important step in diversifying the company’s downstream production footprint.

“Together with our Collie micronising plant, the two facilities will underpin approximately 10,000 tonnes per annum of processed graphite products by 2027,” he said.

Collie Micronising Facility

International Graphite continued to advance development of its Collie facility in WA, which will be the nation’s first commercial-scale micronising operation.

IG6 appointed Bunbury-based contractor Prosser Built to finalise construction and structural design, issuing a purchase order for the manufacture of key micronising equipment.

The plant will have an initial capacity of 4,000tpa in Stage 1, with scalability to 7,500tpa in Stage 2.

The Collie qualification-scale facility remains operational, producing product samples for customer testing, with more than 1,200 kilograms of graphite concentrates so far processed and distributed for industrial and battery sector evaluation.

Springdale Feasibility Studies

Feasibility studies are ongoing at the Springdale graphite project, ahead of a final investment decision the expects to make by the end of 2026.

Construction of the mine and concentrator is scheduled to commence in 2027, with a 2028 target for first production from the site.

International Graphite sees Springdale as a cornerstone asset that will provide secure, long-term natural graphite supply for its downstream facilities.

Mr Worland said the company remains focused on executing its integrated development pipeline.

“We are building a diversified production base across multiple jurisdictions to capture growing demand for graphite products in global industrial and energy markets,” he said.

US Growth Opportunities

IG6’s proposal to the US Department of Defense for as much as US$7.5 million in feasibility funding progressed to Award/Basket Consideration during the June period and the company has also identified a potential site in Savannah, Georgia, as a hub for future downstream operations.

The submission, titled “Addressing Shortfalls in the US Graphite Supply Chain and Defense Industrial Base,” highlights WA as a reliable graphite source and aligns with US critical minerals policy.

The US Department of Commerce recently imposed a 93.5% anti-dumping tariff on certain graphite imports from China, a decision IG6 expects will bolster demand for graphite from trusted jurisdictions such as Australia.

Corporate Activity and Cash Position

IG6 reported $1.081 million cash on hand at 30 June,and has approximately $10.5 million in undrawn state government grants contracted for the Collie micronising facility and Springdale project.

Mining exploration activities and investment expenditure for the quarter totalled $153,098, with no substantive mining production or development activity recorded.

Subsequent to the end of the quarter, major shareholder Comet Resources sold 27.5 million IG6 shares to new and existing investors, using the proceeds to fully repay the $1.125m it owed to International Graphite.